China Food

The first wave of “buy” of Nestle Spring Festival is coming. This time, we will win this “net red” protein powder!

As the lunar year of the tiger began, Nestle, the world’s largest food company, could not wait to announce a wave of new acquisitions, revealing its determination to pay close attention to health needs in the post epidemic era. Snack generation noted that yesterday, Nestle Health Sciences announced the acquisition of pronokal, a weight loss and weight management service provider. Just a few days ago, the company announced that it had agreed to acquire a majority stake in orgain (Chinese Name: aogan), a plant-based nutrition company, and had the option of wholly-owned acquisition in 2024.



Let’s first look at the two acquisition targets. For the latest official announcement of pronokal, Nestle Health Science describes it as a “comprehensive and personalized weight loss system with medical guidance”, providing services such as diet, nutrition and physical exercise. At present, pronokal, headquartered in Spain, has a strong influence in the southern European market. Compared with pronokal, another “protagonist” orgain has a closer relationship with the Chinese market. According to the Nestle newsletter, orgain was founded in California in 2009 by Andrew Abraham, a comprehensive medical expert and cancer survivor, and is a leader in the U.S. plant protein powder and organic nutritional protein ready to drink milkshake industry.





Overseas flagship food brands such as collagen powder, organic fruit and vegetable powder, and organic beauty staple food such as orgain 60204. You can also see many relevant Amway stickers on Xiaohong book. “With the joint efforts of its management team and Dehong capital, orgain’s business in China is growing exponentially.” Dehong capital said. It also said that after the completion of the acquisition, Dehong capital, butterfly equity and Andrew Abraham, founder and CEO of orgain, will retain a certain amount of equity in the company, and Abraham will continue to serve as the CEO of the company.

Although the financial details of the transaction were not disclosed, Bloomberg recently reported that when butterfly equity began to explore the sale or IPO of orgain last year, its valuation was about $2 billion. The agency reported last year that orgain’s annual sales were about $400 million. Nestle informed that the transaction is expected to slightly increase organic growth in 2022 and slightly dilute the group’s basic operating profit margin. The transaction still needs regulatory approval. Commenting on the acquisition of orgain, Gu Xinxin told xiaoshidai that this reflects Nestle group’s determination to enter the field of plant protein nutrition. “Orgain will become a part of Nestle health science, and we will announce China’s integration plan later.”.

Sales exceed 20 billion

As people pay more attention to health after the epidemic, and they need to reshape their product portfolio to seek high growth, Nestle has made intensive acquisitions in relevant fields in recent years, rapidly expanding the territory of Nestle’s health science. The snack generation found that, including the above two acquisitions, the world’s largest food enterprise has made more than 10 acquisitions through Nestle health science since 2020, which is also the business segment with the highest “buy” frequency during Nestle’s period. According to the third quarterly report of Nestle in 2021, the sales of Nestle Health Science in the first nine months of last year reached 3.2 billion Swiss francs (about 22.748 billion yuan), a year-on-year increase of 33.8%. Among them, net acquisition contributed the most, driving the sales growth of 22.4%.

经过频繁收购,雀巢健康科学已建立起三大板块:医学营养品、 消费者护理部门(注:包括胶原蛋白产品、维生素、矿物质和补充剂等)、 新型治疗性营养品。这些业务均专注于营养和新陈代谢领域,并在基础科学和技术方面具有高度协同性。

在砸钱并购的同时,雀巢也不断将买来的产品推向更多市场。例如在中国,该公司去年便引进了胶原蛋白品牌“Vital Proteins”,切入正火速升温的口服美容领域。


雀巢首席执行官马克·施奈德(Mark Schneider)曾表示,雀巢健康科学销售有望在5年内翻倍增长,预计在2021或2022年将达到40亿瑞士法郎规模。

Pay attention to “snack generation” (wechat: foodinc) “and reply to” Nestle “to see the wonderful news.

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