Infant formula disruptor Sprout Organic will expand its national distribution through a new partnership with Australia’s largest health food group, Go Vita.
Sprout launched the world’s first organic plant-based infant formula in June 2021. The deal will see Sprout Organic access more than 500 new retail locations.
Sprout founder Sel Berdie said it was a remarkable opportunity for the company.
“We firmly believe this partnership will deliver strong growth for Sprout Organic, as well as offer significant long-term shareholder value,” Berdie said.
Go Vita product buyer & category manager Greig Shanley said the agreement showed Go Vita’s commitment to expanding its plant-based portfolio.
“Plant-based formulas and healthy snacks for kids are an exciting growth opportunity for us, a new endeavour in our long-standing efforts to meet consumer demand for an expanded portfolio of nutritious plant-based products,” said Shanley.
Berdie said the company spend five years on R&D and sourcing high quality organic ingredients before launched the infant formula.
“Australian infant nutrition standards are extremely high, in addition to being the only country in the world that places legal limits on certain undesired elements. This creates an environment that is highly restrictive in sourcing, but very beneficial to the end product,” he said.
Prior to its launch, the company became a member of the Infant Nutrition Council Australia & New Zealand and a signatory to the Marketing in Australia of Infant Formulas: Manufacturers and Importers Agreement 1992 (MAIF Agreement).
Berdie said it was a major milestone for the company. “It indicates trust and an understanding of the industry in us. Being accepted into the council is recognition as a peer of the infant formula industry,” he said.
Infant Nutrition Council CEO Jan Carey said, “It is wonderful to see new members with innovative new offerings joining the Infant Nutrition Council, and we are very pleased to welcome Sprout Organic.”
“Becoming a signatory of the MAIF agreement is a significant step in participating in the infant formula segment,” said Berdie.
“Having a company and brand that can align itself with the ideals and requirements of the World Health Organisation on infant formula is extremely important to us.”
Berdie knew there was consumer demand for more plant-based infant formula options, with soy the only option but not recommended for infants under six months.
In a pre-sale period last year, more than 300 sales were made in the first 48 hours with orders from Australia and 19 international locations.
“While we expected to receive some pre-sales, the high volume and positive feedback has been unbelievable. It is a true validation of the last five years of hard work in developing such a needed product,” he said.
The company started shipping product in June last year.
Go Vita’s end to end distribution and retail business represents 25 per cent of health food outlets in Australia.
