Adcock Ingram announced the acquisition of a Johannesburg-based supplements business, NutriLida Healthcare, subject to approval from the Competition Commission of South Africa. The acquisition will see Adcock Ingram playing a more significant role in the fast growing vitamins, minerals and supplements (“VMS”) market.
Commenting on the acquisition, Dr Jonathan Louw, CEO of Adcock Ingram, said: “NutriLida has strong brands in several niche market segments. It is our intention to continue to grow these brands and leverage our brand building expertise to become a leading player in the South African VMS market.”
Adcock Ingram has grown its presence in the supplements category in recent years. The company already has a strong presence in the tonics market with household name brands such as Bioplus®, vita-thion® and Liviton®. The acquisition of NutriLida will strengthen its position in this market and further enable the group to gain market share in the overall Fast Moving Consumer Goods (FMCG) category.
The South African VMS market has shown substantial growth over the last few years, primarily due to consumer awareness, education and access, the emerging middle class, the increase in proactive health management and self-medication by consumers. With this in mind, the acquisition of NutriLida will enable Adcock Ingram to move further into categories adjacent to its current business and to increase visibility in the growing self-medication segment.
NutriLida is renowned for its market leading product range, which targets consumers and healthcare professionals.
“Over-the-counter product growth in our previous financial year was driven by economy brands in the pharmacy channel and by supplements and energy products in the FMCG channel. This acquisition is in line with our strategic intent of gaining market share within FMCG, moving into adjacent categories and developing a stronger position in self medication products,” said Louw.
Hilda Lunderstedt, CEO for NutriLida, added: “NutriLida believes in changing lives through improving the quality of life of our consumers, so choosing Adcock Ingram as a business partner has been a natural fit for us. We have, over time, been observing how Adcock Ingram adds value to the lives of its consumers and how it has contributed to the lives of South Africans and those beyond our borders. This transaction will see the NutriLida brand portfolio, which includes ProbiFlora, GynaGuard, ViralGuard, ArthroGuard and others, continue to grow while remaining true to its mantra of creating efficacious products that contribute to healthy lifestyles of South Africans, one consumer at a time.”