The purchase by Mars of a majority shareholding in German active nutrition business, foodspring, will result in a $64m windfall for Fonterra.
In March 2018, Fonterra Ventures invested in Goodminton AG, the parent company of foodspring. As a condition of the Mars deal, Fonterra has sold its interest in Goodminton AG. (Fonterra Ventures is part of Fonterra Co-operative Group. It develops new business models and explores business opportunities with start-ups.)
Fonterra's COO NZMP Kelvin Wickham says the foodspring partnership was “an exciting early activity” for the company’s new Sports and Active Lifestyle business unit.
Wickham says: “From day one both foodspring and ourselves could see how our two companies would complement each other to make the most of the fast-growing sports and active market.
“foodspring had established a strong on-line sales channel and a digital nutrition and wellbeing coach, and we’re the protein innovators with a range of high value, advanced ingredients.
Foodspring was founded in 2013. It offers on-trend, evidence-based and data-driven products for consumers with needs around sports performance, healthy living and weight. It also has a nutrition and fitness platform, with a dedicated “Coach” section, a stand-alone content site on fitness and nutrition, a recommendation engine – “Body Check” – which guides consumers on product choices as well as access to nutritionists through its customer service team.
“Both companies could see the growth opportunities within the targeted nutrition market. And that’s exactly what’s happened. Over the past 18 months foodspring has become the fastest growing targeted nutrition brand in Europe,” Wickham says.
“At the same time, the partnership gave us immediate and direct access to the fast-growing consumer sports and active lifestyle segment. This is not just about professional athletes or bodybuilders anymore. Today it’s about everyday people taking more interest in their health and wellbeing, living longer and leading more active and healthier lives.
“This continues to be a really attractive market for our dairy protein and dairy speciality ingredients and we will keep up the momentum in this market. We are excited about continuing our relationship with foodspring and its new owners Mars, who will remain a valued customer of our NZMP ingredients business.”
In a statement, Mars said it has “always been a key ambition” to build a presence in personalised nutrition.
“It’s one of the fastest growing territories worldwide, becoming a game changer for the way consumers eat. Fuelled by mega-trends such as rising health awareness, improved digital capabilities, scientific breakthroughs and the ability to personalize products, we see great promise ahead.”
