Supreme, the London-listed FMCG group, is making a wager on the GLP-1 weight-loss drugs regime with the acquisition of SlimFast in the UK and Europe.
“SlimFast is ideally placed to capitalise on the growing demand for GLP-1 products, which require nutrition and protein supplementation both during treatment and as an ideal ‘follow-on,’” Supreme announced in a statement today (20 October).
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The owner of the Sci-Mx sports nutrition brand and Battle Bites line of protein bars is buying the SlimFast assets in the UK, Ireland and Europe from Ireland-based Glanbia for around £27m ($36.2m).
Glanbia has already sold the SlimFast assets in North America – the US, Canada and Mexico – to Heartland Food Products Group, which is known for producing the Splenda branded low-calorie sweeteners, along with drink mixes, coffee and nutritional beverages. The financial terms of that transaction, revealed in September, were not disclosed.
Supreme, which also makes and markets vapes and batteries, said the deal with Glanbia amounts to £20.1m, including a “deferred consideration” of $9m to be paid in the next 15 months.
Glanbia, which acquired SlimFast in 2018 for $350m, classified as “non-core” asset by Glanbia in February.
Just Drinks has asked both companies to clarify the nature of the transaction in terms of assets and geographical locations, particularly in Europe.
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By GlobalDataIn 2024, SlimFast’s UK and European assets generated revenue of £25.5m in the year through December and an adjusted gross profit of £9.7m, according to Supreme.
In the UK, SlimFast products are sold in retailers including Tesco, Sainsbury’s, Asda, Morrisons and B&M. The grocers are existing sales avenues for Supreme’s products but the company will gain Boots and Superdrug through the acquisition of the SlimFast assets.
Supreme added it will now have “upsell opportunities” in the circa 55,000 retailers it supplies, including in the cash-and-carry, B2C ecommerce and convenience outlets that do not stock SlimFast’s products.
Opportunities to expand SlimFast into other international markets will also be explored but excluding the Americas, Australasia, the Caribbean and the Philippines, Supreme said.
Just Drinks has asked for clarification and specific destinations.
Supreme CEO Sandy Chadha said: “We are excited to have acquired such an iconic brand in SlimFast, which we believe is highly complementary to our existing drinks and wellness category.
“Under our ownership and track record for product innovation, we believe the commercial opportunities to both enhance and broaden SlimFast’s market presence makes it an ideal addition to our business.”
Founded in 1977, the SlimFast portfolio features meal replacement shakes, bars and snacks, along with targeted weight-loss plans. Unilever paid $2.4bn for SlimFast in 2000 before selling the company to private-equity firm Kainos Capital for an undisclosed sum in 2014.
Supreme said the brand has a “strong position” in RTD and ready-to-mix powders, as well as an “advanced nutrition” range such as high-protein, high-fibre, gluten-free meal replacement shakes and smoothies.
The manufacture of all powdered products, estimated at 40% of SlimFast’s turnover, will be brought in-house, Supreme said, adding the deal complements its “ongoing M&A strategy” around “highly recognised brands”.
Another sports nutrition business was added to Supreme’s portfolio last year.
UK-based contract manufacturer FoodIQ UK Holdings was acquired out of administration for £175,000.
Late last year, it bought Typhoo Tea out of administration for £10.2m, building on the earlier acquisition of canned and bottled soft drinks producer Clearly Drinks.
Drinks and wellness products contributed £48.8m to Supreme’s annual revenue in the year to 31 March, more than double the £23.9m in the previous12 months.
Group revenue increased 4% to £231.1m, while adjusted EBITDA climbed 6% to £40.5m.
Profit before tax rose 3% to £30.9m and EPS was up 5% at 20.1p.
Supreme’s shares were 6% higher at 167p in today’s trading in London as of 12:10pm BST.
In September, Supreme said in a market update that the consensus for revenue in fiscal 2026 was £236m and adjusted EBITDA 35.8m.
“The company has continued to see good momentum across its portfolio in the first half of the current financial year,” Supreme said. “The company has a robust M&A pipeline, capable of offering opportunities across various product categories and markets.”
