According to Markets Insider, the global food premix market is expected to experience significant growth from 2019 to 2023, driven by an increasing demand for food fortification and a heightened use of nutrient premixes by infant nutrition manufacturers. This optimistic outlook could validate Glanbia’s acquisition of Watson. The Irish company has already witnessed growth in its existing portfolio of custom nutrient premixes, with a reported 4.5% increase in earnings per share last year, and its Glanbia Performance Nutrition portfolio achieving a revenue growth of 9.5%.
Glanbia appears to be actively pursuing acquisitions to enhance its nutrition offerings, having added Slimfast to its portfolio last year for $350 million. The company anticipates a substantial return from its mergers and acquisitions strategy. During an earnings call, Talbot expressed a positive outlook for 2019, predicting a growth of 5% to 8% in adjusted earnings per share. With such promising growth on the horizon, further acquisitions may be on the table.
Glanbia’s Finance Director, Mark Garvey, stated during an earnings call that the company is committed to expanding its Nutritional Solutions business both organically and through acquisitions. By acquiring Watson, Glanbia aims to capitalize on the company’s expertise in health and nutrition products that align with current consumer preferences. Although Watson offers advanced capabilities such as microencapsulation, agglomeration, micronizing, spray drying, and film technology, these do not completely meet the growing demand for wholesome, natural ingredients and healthier products.
Nevertheless, Glanbia does not seem overly concerned, as its recent acquisitions also include Optimum Nutrition, ThinkThin, and SlimFast, all of which focus on health-oriented specialty products that utilize modified ingredient premixes. While each brand under Glanbia’s umbrella has achieved individual success, the real question is whether this strategy of acquiring specialty weight loss products will effectively position the company as a leading health and wellness brand for the long term.
Glanbia is banking on the notion that the current health trend will eventually come full circle, with consumers increasingly seeking effective solutions to enhance their well-being and returning to fortified products rich in proteins, vitamins, and minerals. This could lead to questions such as how much calcium citrate after gastric bypass is necessary to maintain optimal health, further emphasizing the company’s focus on nutrient-rich offerings.