Nestlé buys Puravida to grow in nutrition

Nestlé buys Puravida to grow in nutrition

Nestlé Brasil has just purchased Puravida, an independent brand of nutrition, health and wellness products that earned R$300 million last year.

The founder, Flávio Passos, and the CEO and partner of the Brazilian company, Adrian Franciscono, will continue at Nestlé as executives at the head of the business. Nestlé is buying 100% of the capital.

In addition to the two, the main shareholder of Puravida was the private equity manager Aqua Capital.

Puravida will be placed under Nestlé Health Science, the vertical that houses all of the Swiss multinational’s nutrition and health products. This vertical is one of the big bets of the company, which has made several moves to become “a nutrition company,” Latam head of the vertical, Monica Meale, told the Brazil Journal.

“In addition to transforming our own portfolio, we made acquisitions of other companies that could contribute to this strategic fit, such as the purchase of Gerber in 2008,” she said.

Puravida was born just seven years ago from Flávio’s personal trauma. The entrepreneur became semi-obese in adolescence due to poor diet, and had several health problems.

“At 15, I had asthma, was on a lot of medication and was semi-obese. Until one day I read a phrase that changed my life: ‘Make your food your medicine,’” said the businessman.

Puravida’s portfolio is complementary to Nestlé’s. The company has 160 SKUs of nutrients, proteins, food supplements and the so-called ‘super foods’ (foods with high nutritional power, such as acerola).

The brand’s flagship are vitamins and supplements, a category that grows by double digits in Brazil and accounts for 57% of Puravida’s sales.

Puravida operates both through e-commerce (which accounts for 65% of sales) and in physical retail, in which most sales come from stores specializing in nutrition, such as Mundo Verde. The second largest channel is supermarkets, followed by pharmacies.

Nestlé Brazil CEO Marcelo Melchior said he sees an opportunity to expand Puravida’s presence in the farma channel, where it still has a timid presence.

The idea is to use the capillarity of the multinational – present in literally all pharmacies in Brazil – to increase the distribution of Puravida.

Other obvious synergies: the supply and supply chain, where Puravida can benefit from the giant’s purchasing power; and the logistics.

“The idea is to accelerate what they are already doing, respecting their business model,” said Marcelo. “Let’s see where it makes sense to put more energy into things to gain traction.”

Pre-acquisition, Puravida’s expectation was to increase revenues by about 45% this year, reaching R$ 450 million in gross revenue.

BTG Pactual was the exclusive advisor to Puravida, who worked with Demarest Advogados.

Nestlé did not have financial advisors, but did seek advice from Mayer Brown.

Source: Brazil Journal

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