Mars has signed an agreement to acquire a significant majority stake in German functional food and beverage company Foodspring.
On completion of the transaction, Foodspring will remain a standalone business led by its founders within Mars Edge, a segment of Mars. The business will continue to operate out of its headquarters in Germany.
Foodspring’s portfolio includes protein shakes, supplements, snacks and bars, muesli and porridge, and a range of beverages. The company also offers a nutrition and fitness platform with workout and healthy eating tips.
Mars Edge, a unit within Mars founded in 2017, is dedicated to human health and wellness through targeted nutrition.
“When we started Mars Edge, we set out to connect the food you want with the nutrition you need. Over the past six years, Foodspring has been at the forefront of doing just that,” said Mars Edge president Jean-Christophe Flatin.
“Its targeted nutrition business has a distinctive position and loyal consumer base in Europe. We share the same vision to improve the way people live through nutrition and together we will use Foodspring’s expertise across digital know-how, branding and food innovation to build one of the leading platforms in this space.
“The depth of knowledge on consumer needs brought by Foodspring is a great asset and will help us to pioneer the emerging space of personalised nutrition.”
Foodspring was founded by entrepreneurs Philipp Schrempp and Tobias Schüle with their financial co-founding partner Econa in 2013.
“We are looking forward to accelerating the growth of our business by drawing on Mars’ global infrastructure, marketing and science capabilities, as well as its expertise in quality and food safety,” said Schrempp.
“We started Foodspring because we realised that there was room to innovate the functional food category and better serve consumers for whom fitness and health were central parts of their lifestyles. And once we had started the business we soon discovered that nutrition didn’t mean you have to compromise on taste and convenience.”
Schüle added: “It was clear from early on in discussions that we shared a vision and passion with the Mars Edge team. Like them, we want to use our depth of knowledge on consumer needs to pioneer the emerging space of personalised nutrition.
“The food industry is on a huge transformational path towards improving nutrition so people can reach their goals and improve their health. And together with Mars Edge, we want to take the lead in this transforming category.”
It is expected the transaction will close in the third quarter of 2019.
A report from ingredients supplier Henley Bridge has warned that cocoa price increases of 15-20% for the first half of 2024 might continue into the second half of the year. Despite growth in global cocoa supply in 2021, unfavourable weather conditions and demand from emerging markets have led to supply deficits.
By carving out the ANH business, DSM-Firmenich would focus fully on its Perfumery & Beauty; Taste, Texture & Health; and Health, Nutrition & Care divisions. Full focus on these businesses is expected to enhance commercial potential and synergies, supporting “consistent growth outlook alongside robust margins”.
Cargill and Enough are expanding their partnership to further develop nutritious and sustainable alternative meat and dairy solutions. Cargill has signed a commercial agreement to use and market Enough’s Abunda protein and has also invested in the company’s Series C growth funding round.