Swiss nutrition giant Nestlé has agreed to acquire a majority stake in Orgain, a maker of plant-based protein powders, snack bars and shakes.
“People are becoming more aware of the advantages of nutritional protein in supporting their health and wellness, and Orgain’s protein-based beverages and foods tap into people’s desire for nutritious, protein-based products made from real foods and plant-based sources. And Orgain’s products and channels complement Nestlé Health Science’s current portfolio,” Jacquelyn Campo, Senior Director, Corporate Communications at Nestlé Health Science told NutraIngredients-USA.
“Orgain’s emphasis on clean, all natural, plant-based, organic ingredients has made it a leader in the US, and we look forward to combining our companies’ expertise to bring Orgain to more people around the world,” said Greg Behar, CEO of Nestlé Health Science.
Campo said that while the plant-based category is a growing desire of consumers, it is not an exclusive focus.
Butterfly Equity and Orgain founder Andrew Abraham will keep a minority stake, staying on as CEO. Abraham founded Orgain in 2009 in California, becoming the leading plant-based protein powder and leading organic nutritional protein ready-to-drink shake in the US.
“As someone who has experienced the power of clean, protein-based nutrition, and as a physician, it’s been important for me to help as many people as possible to live their most vibrant lives. We’ve worked hard to develop innovative products that make a real difference in consumers’ lives, and now through Nestlé Health Science’s capabilities, resources and dedication to nutrition, we will be able to reach more people around the world,” said Abraham.
Butterfly began exploring a sale or initial public offering of Orgain last year, valuing the company at about $2 billion. Financial details weren’t disclosed, though Nestle has the option to fully acquire Orgain in 2024.
The Nestle Health Science unit consists of consumer health, medical nutrition and supplement brands. There have been several acquisitions in recent years to bolster Nestle’s health and wellness portfolio, adding to faster-growing categories that have helped the company return to mid-single-digit sales growth.