WhiteWave invests in plant-based nutrition15 Jun 2015
Consumer packaged food and beverage company WhiteWave has agreed to acquire Vega, a plant-based nutrition products company, for approximately US$550 million in cash. Vega offers primarily powdered shakes and snack bars – containing nutrient-dense, superfood ingredients. Vega’s products are all plant-based and are said to provide a good source of protein, Omega 3s, fibre, vitamins, […]
Vega offers primarily powdered shakes and snack bars – containing nutrient-dense, superfood ingredients. Vega’s products are all plant-based and are said to provide a good source of protein, Omega 3s, fibre, vitamins, probiotics and antioxidants. According to WhiteWave, Vega holds a strong market position in the plant-based nutrition category across Canada and the U.S., with a top-tier retail customer base and loyal consumer following ranging from general wellness-seekers to athletes. Based in Vancouver, British Columbia, Vega was founded in 2004.
With its distinctive product offering and opportunities to extend its line, WhiteWave believes that Vega is in the early stages of its growth cycle, and that it is also well positioned to capitalise on the favourable plant-based eating trends and upside potential that exist in the fast-growing $8.6 billion nutritional powders, bars and ready-to-drink beverages market, where consumers are increasingly seeking healthy solutions from plant-based offerings. Moreover, this acquisition is said to represent an opportunity for WhiteWave to extend its plant-based foods and beverages platform into nutritional powders and bars, with additional innovation opportunities.
Vega generated net sales of approximately US$100 million over the last twelve months, representing growth of over 30% on a constant currency basis, and grew at a faster rate on a year-to-date basis in 2015.
“Vega’s plant-based nutrition products complement our plant-based foods and beverages portfolio. With its strong brand, high-quality products, and commitment to innovation and sustainability, Vega is a perfect fit for WhiteWave,” said Gregg Engles, Chairman and Chief Executive Officer of WhiteWave. “The team has built an incredible mission-driven company, which has succeeded by consistently delivering innovative plant-based nutrition products. This compelling, accretive transaction is consistent with our strategy to expand the scope of our business into high-growth and on-trend categories. We are excited to welcome them to the WhiteWave family.”
The transaction is expected to close in the third quarter of 2015. Vega will remain headquartered in Vancouver and its senior management team will continue to lead the business.
“As a pioneer in the plant-based movement, we’ve introduced Vega to a core loyal fan base and we are confident that WhiteWave will provide us with the expertise and resources to further realize our vision of empowering the world to thrive through clean, plant-based nutrition,” said Charles Chang, President and Founder of Vega. “With WhiteWave as our partner, we now collectively have our sights set on making Vega more accessible to more people.”
Brendan Brazier, original formulator of Vega products and a former professional Ironman triathlete, said that he expects the WhiteWave acquisition will help spur more innovation.
“We will continue innovating new products that simplify people’s lives and assist them in their ultimate vision of optimal health,” he said. “We are fortunate to be part of the WhiteWave family.”
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