SWITZERLAND – Nestlé Health Science, the health and wellness division of Swiss food manufacturing giant Nestlé, has announced that entered into an agreement to acquire Nuun, a leader in functional hydration.
Founded in Seattle, Nuun is a leading provider of healthy sports hydration that has built a loyal following of athletes and fitness enthusiasts over the past 16 years.
The company pioneered the separation of electrolyte replacement from carbohydrates with its low-sugar electrolyte tablet which became a success, revolutionizing the sports beverage market.
Nuun now has a broad range of effervescent tablets and powders containing additional minerals and vitamins for energy, relaxation and overall well-being.
According to a statement from NHS, the acquisition complements Nestlé Health Science’s existing broad portfolio of active lifestyle nutrition brands and gives the Swiss company a footing in the fast rising functional hydration market.
The acquisition of Nestlé is timely as the global functional water market size which was valued at US$10.34 billion in 2017 is projected to reach US$18.24 billion by the end of 2025, exhibiting at a CAGR of 7.4% in the forecast period, according to Fortune Market Insights.
The high mid-single-digit growth is as a result of functional beverages are emerging as a preferred drink as compared to soft drinks that contain added sugars and a host of synthetic additives such as colors, flavors, and preservatives.
“Every day, health-conscious consumers can support them during exercise by how functional hydration products can add to their overall well-being, and by replacing the minerals that the body loses,” said Greg Beher, CEO of Nestle Health Sciences.
“ We are becoming more aware of this, which is reflected in the steady growth of this category, ”the CEO of Nestle Health Sciences said adding that they can leverage their expertise to “bring Nuun to more people around the world. I am looking forward to it.”
Earlier, NHS announced that it had entered into an agreement with KKR to acquire the core brands of the Bountiful Company for US$5.75 billion.
The transaction includes the high-growth brands Nature’s Bounty®, Solgar®, Osteo Bi-Flex® and Puritan’s Pride® as well as the company’s US private label business.
Nestlé said that the addition of bountiful will bolster Nestlé Health Science’s portfolio, creating a global leader in vitamins, minerals and nutritional supplements.
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