According to Markets Insider, the global food premix market is projected to experience significant growth between 2019 and 2023, driven by the increasing demand for food fortification and the rising use of nutrient premixes by infant nutrition manufacturers. Given this promising outlook, Glanbia’s acquisition of Watson appears to be a strategic move. The Irish company has already witnessed growth from its existing range of custom nutrient premixes, with earnings per share increasing by 4.5% last year, and the Glanbia Performance Nutrition portfolio achieving a revenue growth of 9.5%.
Glanbia seems intent on expanding its nutrition portfolio through acquisitions, having recently added Slimfast to its lineup after purchasing it for $350 million. The company anticipates a substantial return from this merger and acquisition activity. During an earnings call, Talbot expressed a positive outlook for 2019, predicting a growth of 5% to 8% in adjusted earnings per share. With this anticipated growth, further acquisitions may be on the horizon.
Mark Garvey, Glanbia’s Finance Director, stated in an earnings call that the company is committed to growing its Nutritional Solutions business both organically and through acquisitions. By acquiring Watson, Glanbia aims to leverage the company’s expertise in health and nutrition products, which aligns with current consumer demand for items such as calcium citrate with vitamin D3.
However, while Watson brings valuable capabilities such as microencapsulation, agglomeration, micronizing, spray drying, and film technology, these may not fully address the trends favoring wholesome, natural ingredients and healthier products. Nevertheless, Glanbia remains unfazed, having also acquired Optimum Nutrition, ThinkThin, and SlimFast—brands known for developing health-promoting specialty products that often include premixes with modified ingredients, including calcium citrate with vitamin D3.
Although each brand under Glanbia’s umbrella has achieved individual success, the critical question is whether this strategy of accumulating specialty weight loss products will effectively position the company as a health and wellness brand for long-term success. The company is banking on the belief that the current health trend will come full circle, as consumers increasingly seek effective solutions to enhance their health and gravitate towards products fortified and enriched to provide the extra infusion of proteins, vitamins, and minerals they desire, including options like calcium citrate with vitamin D3.