Supreme banks on SlimFast to win new GLP-1-driven consumers
Supreme is looking to capitalise on the growing demand for GLP-1 products following its big-money acquisition of SlimFast.
The London-listed FMCG group announced its takeover of SlimFast’s UK and European assets today (20 October) from Glanbia PLC in a deal worth over £20 million.
Glanbia, which procured SlimFast for $350 million in 2018, has already sold the heritage weight management brand’s North American assets to Heartland Food Products Group.
Founded in 1977, SlimFast established itself as a household name through selling meal replacement shakes, bars, snacks, and weight-loss plans.
Supreme, which also operates in the vaping and electronics markets, says the acquisition will bring muscle to its ever-swelling Sports Nutrition & Wellness portfolio.
SCI-MX, Battle Bites, and the newly formed Juicy Protein are among the other functional brands under its umbrella.
But there’s one avenue the group is particularly interested in exploring. Supreme believes SlimFast is “ideally placed” to dominate the food subcategory forming as a result of GLP-1 medications.
Snack and sports nutrition brands of all stripes have been falling over one another to position themselves as GLP-1-aligned alternatives.
By Supreme’s reckoning, SlimFast can meet the trend head-on with “nutrition and protein supplementation both during treatment and as an ideal ‘follow-on.'”
SlimFast also holds a “strong position” in formats including RTD and ready-to-mix powder products, as well as an ‘Advanced Nutrition’ range comprising high-protein, high-fibre, and gluten-free meal-replacement shakes and smoothies.
In the UK, SlimFast products are stocked by the likes of Amazon, Home Bargains, B&M, Asda, Sainsbury’s, Tesco, and Morrisons — all existing customers of Supreme.
However, the acquisition will provide new access to both Boots and Superdrug.
Supreme highlighted the scope for “upsell opportunities” in the circa 55,000 retail sites it currently supplies, including leading retail chains, Cash & Carry, B2C e-commerce, and convenience stores not currently stocking SlimFast products.
It also cited the acquisition as an immediate earner in its strategic rationale.
For the year ended 31 December 2024, SlimFast’s UK and European assets reported unaudited revenue of £25.5 million and adjusted gross profit of £9.7 million, according to Supreme.
“We are excited to have acquired such an iconic brand in SlimFast, which we believe is highly complementary to our existing Drinks & Wellness category,” said Sandy Chadha, Supreme CEO.
“Under our ownership and track record for product innovation, we believe the commercial opportunities to both enhance and broaden SlimFast’s market presence makes it an ideal addition to our business.”
A total cash consideration of £20.1 million will be paid to Glanbia PLC, including £9 million of deferred consideration due in 15 months’ time.
It now plans to expand SlimFast globally, with the exclusion of the Americas, Australasia, the Caribbean, and the Philippines.
The manufacturing of all powdered products, estimated at 40% of SlimFast’s turnover, will also be moved in-house to benefit its entire Drinks & Wellness division.
The deal is very much in keeping with Supreme’s M&A strategy of adding “highly recognised brands” to its roster of “high frequency consumable products”.
At the latter end of 2024, it bought Typhoo Tea out of administration for £10.2m, building on the earlier acquisition of Clearly Drinks.
Supreme’s SlimFast announcement sent its share price up more than six per cent in early trades.
