Bridgepoint Development Capital ('BDC') is to acquire a majority shareholding in Vitamin Well AB, a high growth, market-leading business in the functional drinks sector, for an undisclosed sum.
Established in Stockholm in 2006, the company develops, markets and sells high-quality products for health conscious and active consumers under the well-known drinks brands Vitamin Well, Vitamin Well FREE, NOBE aloe vera, NOCCO and Vitamin Well+. With sales in 28 countries, the company focuses on developing an assortment of tasty functional drinks for different consumer groups and occasions.
"We are excited to welcome BDC as our new owner. With new funding and resources, Vitamin Well is well positioned to continue to grow and develop its brands and products," explains Jonas Pettersson, CEO of Vitamin Well.
"In addition to adding competency and experience from developing fast-growing businesses internationally, they also have access to an established European network and the financial resources to support growth. We believe that we have an excellent opportunity to accelerate international growth and continue to develop new, exciting products", he continued.
Johan Dahlfors, partner responsible for Bridgepoint Development Capital's investment activities in the Nordic region commented: "We are very impressed with the business that the Vitamin Well team has built over a relatively short time period. Consumers increasingly seek healthier alternatives to carbonated soft drinks and Vitamin Well's products cater to this growing demand. We look forward to working with a strong management team to drive innovation, to accelerate growth in the Nordic region and to broaden the European footprint."
The functional drinks segment has been the fastest growing drinks segment in recent years and is forecast to grow at 10-20% p.a. in Sweden and in the wider Nordic region, driven by increased awareness and greater focus by consumers on healthier and more active lifestyles. When compared with the broader international market, the Swedish functional drinks market is more developed, albeit that similar growth trends are being experienced across Europe and beyond.
On the back of underlying market growth and successful new product development, Vitamin Well has grown strongly in its domestic Swedish market where it has captured significant market share. Following recent expansion into other European markets, international sales now account for 50% of volumes sold.
The transaction is conditional upon approval from the Swedish Competition Authority.
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