Glanbia has sold its meal replacement brand to Typhoo Tea owner, Supreme, for a total cash consideration of £20.1 million ($27 million), including £9 million of deferred consideration due in 15 months’ time.
The Group will satisfy the consideration for the acquisition through a mixture of its existing cash resources and utilisation of its asset-based lending facility.
Founded in 1977 in the US, SlimFast is a heritage weight management brand, known for its meal replacement shakes, bars, snacks, and weight loss plans.
SlimFast holds a strong foothold in the ready-to-drink and ready-to-mix powder space, alongside having an advanced nutrition range which includes high-protein, high-fibre, gluten-free meal replacement shakes and smoothies.
SlimFast’s UK and European established sales footprint comprises Amazon, Home Bargains, B&M, Asda, Sainsbury’s, Tesco and Morrisons (existing customers to Supreme) and will provide Supreme access to Boots and Superdrug.
For the year ended 31 December 2024, SlimFast’s UK and European assets reported unaudited revenue of £25.5 million and adjusted gross profit of £9.7 million.
SlimFast had been performing poorly for Glanbia - likely a result of the advent of weight-loss drugs. However, Supreme believes the meal replacement brand is ideally placed to capitalise on the growing demand for GLP-1 products, which it says require nutrition and protein supplementation both during treatment and as an ideal ‘follow-on’.
The brand complements Supreme’s drinks and wellness existing category and will expand its presence in the weight management market – a segment projected to reach £1.5 billion by 2027 according to Grand View Research.
The acquisition also provides Supreme the opportunity to expand SlimFast globally (excluding Americas, Australasia, Caribbean and Philippines).
Supreme plans to move the manufacture of all powder products (40% of turnover) in-house, thus providing considerable scale to its manufacturing operations, benefitting its entire drinks and wellness division.
“We are excited to have acquired such an iconic brand in SlimFast, which we believe is highly complementary to our existing Drinks & Wellness category,” commented Sandy Chadha, chief executive officer of Supreme.
“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.”
Supreme PLC will be bringing the SlimFast brand under its vertically integrated model that spans development, manufacturing, and distribution to over 55,000 UK retail outlets.
The group’s strategy and experience of acquiring, modernising, and scaling heritage brands has seen its revenues exceed £245 million.
Chadha continued: “There are huge opportunities to revitalise this brand and ensure it remains a key player in the rapidly growing health and wellness market. We’re investing in its future, putting plans in place to expand the distribution channels and product lines to ensure that SlimFast will be back where it belongs on the shelves, in the fridges, and in the hearts of UK shoppers.”
This news follows last month’s acquisition of SlimFast US to the Heartland Food Products Group.