In acquiring a controlling interest in Nutribrands, Verus International, which is a subsidiary of branded consumer products provider Verus Foods, will strive to reach and appeal to Brazilian buyers.
Prevalent in the sports nutrition, energy, vitamin supplement, and fat reduction segments, Nutribrands has a popular and mature position throughout the Latin American country. The ties between the Brazil-based nutrition name and the USA are already present, as Nutribrands currently owns, imports and distributes over 150 trademarked Made in the USA foodstuffs, specifically for Brazilian consumers.
The latest partnership between Verus International and Nutribrands is now set to enhance and progress the sports nutrition, energy, vitamin supplement and fat reduction categories by leveraging trends and successes across the US and Brazil.
Entering the largest consumer market in South America: Gaining a foothold
Commenting on the drivers behind the new investment and strategic decision to enter the Brazilian marketplace, Anshu Bhatnagar, CEO of Verus International stated: “We had multiple reasons to seek out this acquisition. First, Nutribrands gives us an instant foothold in the largest South American consumer market, with the potential to reach tens of thousands of drugstores, convenience stores, supermarket points of purchase, and e-commerce stores.”
Speaking to NutraIngredients LATAM, Verus International’s CEO Anshu Bhatnagar said: "We are always searching for opportunities to enter new continents and Nutribrands provides us an entry into South America, specifically the Brazilian market, which is one of the top 10 in the world.”
With a total of 17 brands, including Arnold Nutrition, Nutribrands’ products spans the sports nutrition and bodybuilding segments; gourmet protein bars; nutraceuticals, vitamins and functional oils; and diet and weight loss products.
In addition to its own broad range of brands, Nutribrands is also the exclusive Brazilian distributor of leading sports nutrition providers, Hi-Tech and APS.
Through its latest partnership, Verus International has successfully “acquired some established, leading brands and revenue, along with some very promising opportunities for growth”, Bhatnagar adds.
Success in Brazil
In teaming up on branding, sales and marketing efforts, together, Verus International and Nutribrands will be able to directly push its product portfolio to Brazilian nutrient purchasers. The dietary supplement market in Brazil is especially strong in the country and is typified by formulators developing combined simple supplements that provide added functionality, market intelligence provider, Euromonitor International revealed.
“Historically, in every market that we have entered, we have been approached by other quality companies seeking distribution into a region where they do not have a presence, so the door is going to swing wide open for some terrific cross-border offerings, including those from other partners,” Bhatnagar went on to say.
In Brazil, consumers are highly receptive of dietary supplement products, such as fish oils/omega fatty acids, as strong marketing campaigns and the widespread availability of products have made it easy for buyers to engage and source.
In particular, “Nutribrands was looking for a partner to help develop its Vivamil energy shot”, thought to be the first pure caffeine product released in the Brazilian market by Nutribrands. “Along with other products in their portfolio, has a large, unfilled backlog,'' Bhatnagar said.
Looking ahead, Brazil is set to be one of many Latin American markets Nutribrands are expected to explore. “As Nutribrands is heavily focused on health and nutrition, which is a continuously growing industry worldwide, we expect explosive growth within Brazil and South America and will be exploring additional markets.”
“If you are a truly international food company, you must have a presence in South America and Brazil, so we are excited to extend our reach into this important region,” Bhatnagar concluded.