Indian FMCG main ITC has purchased Sproutlife Meals Non-public Restricted, it introduced this week.
The deal consists of Sproutlife Meals’s direct-to-consumer well being model Yoga Bar, which sells protein bars, muesli and peanut butters.
ITC stated it expects to “quickly scale up” Yoga Bar as a part of its technique to develop its healthy-foods portfolio.
The deal, for an undisclosed sum, is predicted to be accomplished by 2027, with no less than a 47.5% stake within the enterprise acquired by 31 March 2025.
“The acquisition will allow ITC to enhance its future-ready portfolio and improve market presence within the ‘good for you’ house,” it stated in an announcement.
“Yoga Bar is predicted to be quickly scaled up, leveraging ITC’s enterprise strengths in areas resembling gross sales and distribution, sourcing, product improvement and digital.”
ITC meals division chief govt Hemant Malik stated: “We imagine that this funding is an thrilling alternative that aligns with ITC’s meals enterprise’ aspiration to construct a formidable portfolio within the nutrition-led, healthy-foods house.
“Inside a brief span of time, Yoga Bar has established itself as a number one model within the wholesome meals house, pushed by impactful market positioning and a variety of revolutionary merchandise.”
Yoga Bar was based by two sisters, Anindita and Suhasini Sampath, in 2014 and now has an annual run price of INR1bn (US$12.3m).
Whereas the majority of its gross sales are on-line, it now has a “rising presence in offline shops”, ITC stated.
In an announcement, the Sampaths stated: “We’re delighted to affix fingers with ITC in Yoga Bar’s subsequent part of development. ITC has a protracted historical past of constructing world-class manufacturers, leveraging its core competencies which embody a superior understanding of the patron, robust backward linkages with the agri-supply chain and a deep and large distribution community.
“We’re assured that this partnership will add to Yoga Bar’s aggressive benefit and take it to the following stage from the present annualised run price of over INR1bn. We’re delighted that ITC and Yoga Bar will work collectively to construct one of many largest manufacturers within the healthy-foods house.”
ITC, identified in meals for manufacturers resembling Bingo snacks and Aashirvaad kitchen elements, final 12 months launched a variety of merchandise into the nation’s fledgling marketplace for plant-based meat alternate options.
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