Nestlé continues to direct investments toward the health and wellness market, with its latest move targeting the burgeoning plant-based market — a segment estimated by Bloomberg Intelligence to reach a value of more than $162 billion by 2030.
Nestlé Health Science intends to purchase a majority stake in Orgain, a manufacturer of plant-based protein powders, drinks, bars, supplements and other products.
Founded by Dr. Andrew Abraham in 2009, Orgain was cited by Nestlé as the leading plant-based protein powder and leading organic nutritional protein ready-to-drink shake in the United States. Butterfly Equity acquired a majority stake in the company in November 2019, along with investors Ontario Teachers’ Pension Plan Board and DCP Capital.
[See also: Nestlé Reorganizes Operations]
All of the firms will maintain minority ownership positions in the company, as will Abraham. Terms of the deal weren’t disclosed, but it also includes the option for Nestlé Health Science to fully acquire Orgain in 2024.
Nestlé, the No. 1 publicly owned consumer good company, expects the brand complement its existing portfolio of nutrition products as it continues to reshape the categories in which it invests and operates within.
“Nutritional protein plays a key role in supporting our health and wellness, whether we enjoy an active lifestyle or are facing health challenges," said Greg Behar, CEO of Nestlé Health Science, in a statement. "Orgain's emphasis on clean, all natural, plant-based, organic ingredients has made it a leader in the U.S., and we look forward to combining our companies' expertise to bring Orgain to more people around the world."
Abraham said partnering with Nestlé Health Science enables the brand to take a giant leap forward in pursuing its mission of providing accessible, healthy nutrition for everyone.
“Nestlé Health Science shares that mission and will help us to get better, cleaner nutrition products into the hands of more consumers than I ever imagined possible when I founded this company 12 years ago,” he noted.