The $250 billion consumer food giant said in July it was launching a strategic review of low-growth, low-margin brands in the vitamins, minerals and supplements category, a prelude to a possible sale reconfirmed by Nestle after new CEO Philipp Navratil took the helm in September.
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That poses a challenge for Nestle, which has earmarked for possible sale Nature’s Bounty, Osteo Bi-Flex, and Puritan’s Pride – all affordable mainstream brands – as well as its U.S. private label business.
Furthermore, the supplement market is fragmented, and its regulatory landscape is in flux, adding risk to any acquisition. Industry players are signaling disinterest, Reuters’ reporting found – but private equity funds are more likely to be in play.
The brands under review generate 2.8% of Nestle’s annual sales, or around $1.25 billion. Nestle, which declined to comment for this story, has said it wanted to double down on the premium dietary supplement labels it is holding onto, such as Solgar, which sells everything from standard vitamins to products promoting brain health, hair growth and stress reduction.
PRIVATE EQUITY COULD MAKE A PLAY
Nestle acquired these vitamin brands in 2021 for $5.75 billion – the third-largest acquisition in the vitamin, mineral and supplement space in at least the last 12 years, according to data from PitchBook.
Matching those valuations will be a tall order amid a
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