Typhoo Tea Owner Expands Portfolio with £20.1m SlimFast Acquisition

The owner of Typhoo tea has acquired SlimFast’s UK and European business for £20.1 million, aiming to enhance its presence in the weight management sector. This strategic move comes as the market faces increasing competition from weight-loss medications, particularly GLP-1 drugs like Wegovy and Mounjaro, produced by pharmaceutical giants Novo Nordisk and Eli Lilly.

The acquisition was finalized following Glanbia’s decision to sell SlimFast, which has seen declining sales in Europe while maintaining stronger performance in the United States. Glanbia’s Chief Financial Officer, Mark Garvey, noted that the company sought to divest SlimFast due to a “significant change in how weight management is being managed by our consumers.”

Revitalizing SlimFast’s Market Position

SlimFast, which originated in Florida in 1977, was founded by S Daniel Abraham, who passed away in June at the age of 100. The brand gained popularity in the late 1980s, thanks in part to its association with former LA Dodgers manager Tommy Lasorda, who featured in its advertisements. Over the years, SlimFast has changed ownership multiple times, initially being sold to Unilever for £1.4 billion in 2000. Following a downturn in sales attributed to the Atkins diet trend, the brand was sold to private equity firm Kainos Capital in 2014 for $350 million (£261 million) and subsequently acquired by Glanbia four years later.

Despite the challenges facing SlimFast, the brand still reported sales of £25.5 million and an estimated pre-tax profit of £6 million to £7 million last year. Its product line includes low-calorie meal replacement shakes, drinks, and snacks, which are enriched with vitamins, minerals, and protein. Flavours range from strawberry to café latte and chocolate, with shakes typically prepared by mixing the powders with skimmed milk.

Supreme, a Manchester-based consumer goods company, aims to integrate SlimFast into its drinks and wellness division. Having acquired the Typhoo tea brand from administration last year, Supreme also manufactures batteries and vaping products. Chief Executive Sandy Chadha expressed enthusiasm for the acquisition, stating, “We are excited to have acquired such an iconic brand in SlimFast, which we believe is highly complementary to our existing drinks and wellness category.”

Future Prospects in Weight Management

The weight management market is projected to reach £1.5 billion by 2027, indicating a lucrative opportunity for Supreme. By diversifying its portfolio with SlimFast, the company hopes to capture a more significant share of this growing sector. The acquisition follows Supreme’s earlier purchase of Clearly Drinks, a UK-based producer of spring water and soft drinks established in 1885, reflecting its strategy to broaden its product offerings beyond batteries and vapes.

The integration of SlimFast into Supreme’s portfolio represents a critical step towards revitalizing the brand and enhancing its market presence. With a commitment to innovation and product development, Supreme aims to leverage SlimFast’s legacy to navigate the competitive landscape of the weight management industry successfully.