FMCG majors look to acquire smaller brands to take a bite of protein segment

WITH GROWING CONSUMER inclination towards health supplements and snacking, established FMCG players are looking at expanding their footprint into newer areas such as the protein and health category. For this, the companies are planning acquisitions of smaller brands which have already gained traction among consumers.

- SHUBHRA TANDON

Nestle India and ITC have shown interest in picking up a stake in Yoga Bar, a healthy snacking and breakfast brand. Sprout Life Foods, the parent company of Yoga Bar, is said to be in the market to raise funds of around ₹150 crore, and given the growing importance of protein in the food and beverages (F&B) space, industry experts say it would make strategic sense for companies like Nestle and ITC to participate in the funding as they not only get a bite of the segment but also the direct-to-consumer (D2C) space.

Some D2C brands have been disruptors in the space, which has led larger FMCG players to take cognisance of these companies of late. Yoga Bar, for instance, has ambitions of entering the children and infant food category - a segment where Nestle enjoys a strong market share.

The move would also be in line with the trend of bigger FMCG brands investing in D2C brands in India, as companies do not want to miss out on the growing online shoppers market.

Marico has picked up a 54% stake in True Elements, another healthy snacking and breakfast brand, while Hindustan Unilever (HUL) has also launched some of its own beauty and personal care brands like Dove Baby, Love Beauty and Planet, Simple and Dermalogica.