Nichols has added to its portfolio, scooping up VitHit for €75 million in cash (c.£64M).
VitHit operates across three core categories: still drink/PET, sparkling/cans, and effervescent powders. Its products contain eight essential vitamins and are low sugar and low calorie.
The ups and downs of VitHit
The business was founded by Gary Lavin, who previously played rugby for Leinster and Harlequins, before a knee injury ended his professional career in the 1990s.
In 2000 he founded the business which now boasts a 42% share of the category in the UK. It is also the leading functional drinks brand in the Republic of Ireland, with 97% market distribution.
However, the journey hasn’t been entirely smooth sailing, with the business experiencing an insolvency in 2007.
During the time, Lavin was forced to lay off the entire sales team, taking over the role himself. According to an interview with The Irish Times, he drove across the country for 18 months, personally selling the product into 3,500 stores.
Today, its revenue stands at €26.5 million, with a CAGR of 9.5% over the last three years.
Nichols health push
On the acquisition, Nichols says the beverage business has ‘clear’ organic growth opportunities and synergies, and is set to enhance ‘attractive’ shareholder returns.
The move follows the manufacturer’s recent investment into functional drinks, following the rollout of Vimto Wonderfuel and the planned launch of Myprotein Water later this year.
It also comes as consumers continue to focus on health, with an expectation now that products tick this box.
Today, the UK functional drinks market is worth £5.8 billion and continues to witness strong growth, increasing by 10% between 2025 and 2026.
Commenting on the acquisition of VitHit, Andrew Milne, CEO of Nichols, said: “With its established market position, alignment with our asset-light operating model, proven profitability and significant headroom for growth, VITHIT perfectly fits the acquisition profile we have been looking for and is fully aligned with our long-term growth strategy.
“The brand has built strong market positions in both Ireland and the United Kingdom, supported by a differentiated consumer proposition, high levels of customer loyalty and – above all – a great tasting portfolio of functional soft drinks.
“We believe Nichols is ideally placed to accelerate VITHIT’s development through our commercial capabilities, customer relationships, route-to-market expertise and international infrastructure.
“The acquisition is expected to be immediately earnings enhancing, generate attractive returns for shareholders and strengthen our ability to deliver sustainable long-term growth.”
“We are delighted to welcome the VITHIT team to Nichols and look forward to working together to realise the significant opportunities ahead.”
