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Nestle In Talks To Buy The Bountiful Co. Before IPO

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Swiss food giant Nestle on Monday confirmed that it was in talks to acquire “all or part of” The Bountiful Company. The maker of Nature’s Bounty vitamins is backed by private equity firm KKR & Co. and had been planning a U.S. initial public offering.

Nestle’s statement follows media speculation about such a deal, with The Wall Street Journal reporting on Friday that Nestle was looking at a mid-single-digit billion-dollar deal for The Bountiful Co.

KKR & Co. was said to have been planning an IPO valuing the firm at more than $6 billion, though an acquisition by Nestle could preempt the initial public offering, a person familiar with the matter said.

Nestle’s move comes four years after Schneider dove into the field of vitamins and supplements in his first year as CEO in 2017 with the $2.3 billion acquisition of Atrium Innovations Inc. Schneider has made more than 50 deals since he took over at the helm, disposing of lagging businesses like U.S. chocolate and mass-market bottled water, and folding Nestle’s ice cream brands into a joint venture there. He strengthened the Swiss company’s high-growth categories with smaller transactions in pet care and also splurged $7.15 billion on a deal to market Starbucks coffee products.

“This remains another example of how the company can manage via portfolio reshuffling its transition from coffee/pet to a more diverse mix in the coming years,” Citi analyst Cedric Besnard, wrote in a note.

A potential deal for Bountiful would accelerate Nestle’s strategy of buying larger brands of vitamins as it tries to gain pricing power and appeal to high-spending health-conscious consumers.

The approach has delivered, with Nestle last week reporting sales growth at double the pace analysts predicted. Supplements and minerals that boost the immune system are in high demand, and e-commerce has become an effective way to sell such products, the company said. Nestle Health Science’s revenue rose almost 10% in the first quarter on an adjusted basis.

Nestle shares have gained more than 70 percent since Schneider became CEO, and the company is worth more than $300 billion. The Shares of Nestle fell 0.8 percent in Zurich on Monday.

Bountiful sells a wide range of vitamins that are available in retail chains such as Walmart, CVS and Rite Aid. Supplements and vitamins are attractive targets during the pandemic, which has boosted demand for products that are advertised as helping consumers’ health and immune systems.

The company, whose brands also include Puritan’s Pride, filed registration documents for the listing earlier this month.

Big consumer-goods companies have increasingly been interested in the vitamins, minerals and supplements sector, and the area builds on Nestle’s desire to push more into healthy, medical nutrition and self-care trends, according to Bruno Monteyne, an analyst at Bernstein.

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Amazon Launches First ‘Real Life’ Clothing Store For Men And Women

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American multinational technology company, Amazon is launching its first apparel store, ‘Amazon Style’.

Investors King gathered that the clothing store, located in a Southern California mall, later this year will feature women’s and men’s apparel, shoes, and accessories from a mix of well-known and emerging brands, with prices catering to a wide range of shoppers.

According to Amazon, shoppers will get personalized recommendations pushed to their phones as they browse the new Amazon Style store. The company also noted that the clothing store will feature a mix of well-known and emerging brands, adding that every individual’s budget would be met.

The store which will be about 30,000 square feet would be digitalized as shoppers will rely heavily on their smartphones in order to browse the store.

Managing Director of Amazon Style, Simoina Vasen told CNBC that when shoppers walk into the store, they’ll see “display items,” featuring just one size and color of a particular product; the remaining inventory for each product will kept in the back of the store.

He added that after logging into the Amazon app on a smartphone, they’ll scan a QR code on the item to view additional sizes, colors, product ratings and other information, such as personalized recommendations for similar items.

“This allows us to offer more selection without requiring customers to sift through racks to find that right color, size and fit,” he said.

After scanning the QR code on an item, shoppers can click a button in the Amazon app to add the item to a fitting room or send it to a pickup counter.

According to Vasen, shoppers will be able to access their in-store purchase history in the Amazon app.

A recently released research by Wells Fargo analysts shows that Amazon has surpassed Walmart as the No. 1 apparel retailer in the U.S.. This is largely due to the e-commerce boom recorded as a result of the COVID-19 pandemic.

Wells Fargo estimates that Amazon’s apparel and footwear sales in the U.S. grew by roughly 15% in 2020 to more than $41 billion, which is 20% to 25% above rival Walmart.

This represents an 11 to 12 percent share of all clothing sold in the U.S. and 34 to 35 percent share of all clothing sold online.

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Nike Most Marketed Sports Brand On Social Media With $617M Ad Value

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American sportswear brand Nike created the most commercial ad value on social media in the sports industry in 2021. According to the latest data presented by Safebetting, Nike produced $617 Million worth of ad value through their commercial partners on various social platforms. They were followed by Adidas in the second spot.

Nike received $617M worth of Social Media exposure via 16236 partners in 2021

A recent report looks into top marketable sporting brands on social media. The report compares various bands in the sports industry and their sponsorship deals with athletes and sports organisations. It further analyses various social media engagements created for these brands and then quantifies the overall exposure into equivalent advertising value.
As per the report, at present, Nike has the highest number of commercial partnerships in the sporting industry at 16,236 partners. Hence, it should not be a surprise to see them produce the most ad value, $617 Million, through social media engagements.

However, it is definitely interesting that Adidas, second in the list with $343 Million worth of advertising value, doesn’t come anywhere near Nike. The German brand managed the distant second spot with 9,181 partnerships.

Airline company Emirates is a familiar sight in sporting events. However, the Dubai-based company is not a traditional sporting brand like Nike and Adidas. Emirates produced a $220m worth of ad value on social media through their 2269 sporting partnerships.

Spanish financial company Santander also relies hugely on sports to advertise themselves. They produced $187m value worth of exposure in social media engagements through their 1173 partners. Energy drink Red Bull is on the fifth spot of the list with $162m in ad value on social media. At 4611, Red Bull’s count of partners is significantly higher than Emirates and Santander.

German sportswear brand Puma comes sixth in the list. Puma is a popular sports brand, and it might surprise some to see them this low on the list. In fact, according to the report, Puma has the highest number of commercial partnerships in sports behind Nike and Adidas – at 4961. However, the company generated only $150m in social media ad value.

US-based insurance group State Farm comes in the seventh spot. The company has 978 sporting partnerships which helped it make $148m in ad value on various platforms. State Farm has a number of high-value partnerships across all major US sports.

Monster Energy occupies the eighth spot on the list. The energy-drink brand, currently purchased by the Coca-Cola Company, has 3023 partnerships in the sports industry. It benefitted with $143million ad value through its partnerships.

Indian-gambling company Dream 11 is an interesting case. It has only 167 commercial partnerships, but it was helped by $112m-worth of promotion on social media. Netherlands-based beverage brand Heineken is in the last spot with $109M in ad value on social media through its 1231 partners.

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Burger King Expands to Nigeria

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Burger King, an American multinational chain of hamburger fast food restaurants, has opened its very first restaurant in Nigeria to deepen its growing brand, support new job creation and enhance economic productivity in Africa’s largest economy.

The United States Mission in Nigeria has praised the improving commercial ties between Nigeria and the United States as American franchises and branches set up shops in Nigeria. This has in turn created more jobs as well as investment opportunities in the country.

This was said by the US Mission Commercial Counselor, Jennifer Woods during her speech at the opening of the Burger King outlet in Nigeria. Woods underlined the impact which new businesses have on a country’s economy, especially with a popular franchise like Burger King opening in a developing market like Nigeria.

She said that being Africa’s largest economy and a large youth population with a strong connection to the world, American brands must look at Nigeria as a highly critical market. She went ahead to state that while the companies will benefit from the expansion into the country, Nigeria itself will also benefit largely from their presence in the country.

Woods also described the addition of another American-owned franchise (one that emphasizes a culture of excellence) will help to provide job opportunities as the business expands to new parts across the country. She praised the high level of interest by consumers and the passion which they have for the iconic American rapid service restaurant since it began its operations in early November.

The Speaker of the Nigerian House of Representatives, Honourable Femi Gbajabiamila congratulated Burger King and all its local partners on the intriguing business deal, explaining it as another signal of the benefits of a close business relationship between the United States and Nigeria. He also stated that Burger King is expected to open hundreds of outlets across the country.

Burger King entered into an alliance with local firm, Allied Food & Confectionary Services Limited in order to bring the American brand into the Nigerian market. The Group Managing Director of Allied Food & Confectionary Services Limited, Antoine Zammarieh has prior experience bringing United States rapid service restaurants to Nigeria.

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