The acquisition will provide access to novel technologies, which combined with Gumlink’s proprietary gum technologies, will enable the partnership to offer the most potent nutraceutical chewing gum range, Birn told NutraIngredients. “Gumlink is now following our strategic pathway to maintain and further build our position as the world’s leading nutraceutical gum developer and manufacturer.”
Although gum is a very small category today, probiotics is one of the fastest growing categories, said Birn. “If you make good gum there are significant opportunities ahead,” he added.
Global Industry Analysts (GIA) estimates the size of the global probiotics market at $15.9bn in 2008 with sales predicted to reach close to $30bn within four years.
The joint venture will focus on the North American market but Birn said it was highly likely that innovation developed in America would be deployed in Europe.
In addition to research and development, the acquisition will provide Gumlink with a nutraceutical manufacturing and distribution platform in North America.
Tom Holtgen, CEO Tab Labs Inc. said: “Gumlink brings to Tab Labs scale, infrastructure and resources that will allow us to take all aspects of our business to the highest levels. Our common vision and synergies are very complementary, and will result in many new exciting innovations and discoveries.
“Tab Labs is now positioned to taking ownership as North America’s leading nutraceutical chewing gum innovator and contract manufacturer.”