Remember SlimFast? Founded in 1977, the SlimFast portfolio features meal replacement shakes, bars and snacks, along with targeted weight-loss plans.
For a long time, it was a massive deal, and the go-to for anyone who wanted to lose weight fast and easy.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
But these days, the brand is a shadow of its former itself, its decline is a classic tale of changing tastes and a market that left it behind.
SlimFast has changed hands a few times over the last 25 years – and for ever-decreasing amounts of cash. Unilever paid $2.4bn for SlimFast in 2000 before selling the company to private-equity firm Kainos Capital for an undisclosed sum in 2014.
Four years later, Ireland-based food and ingredients group Glanbia acquired the brand for $350m in 2018.
Split down the middle
The SlimFast business has just been sold off in two halves.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThis week, London-based FMCG group Supreme announced a deal to buy the rights to SlimFast in the UK and Europe for around £27m ($36.2m).
That transaction came a month after Heartland Food Products – the US company behind Splenda sweeteners – acquired the rights in North America for an undisclosed sum.
Ivan Torossian, a consulting director at GlobalData, Just Food‘s parent, says: “I think that from a strategic perspective the split‐deal makes sense.
“We are seeing several splits in CPG but this will be interesting from an execution point of view. In North America, the acquisition by Heartland is a logical fit, considering they already play in reduced‐sugar/weight‐management adjacent spaces.
“On the European side, Supreme paid a relatively modest price for an iconic brand, which signals both the value of the brand recognition and the considerable challenge ahead.”
However, Torossian says the split “will introduce complexity and risk”, adding: “Think about how hard the coordination will have to be, the consistency of positioning, given the very different regulatory environments and consumer sentiment.”
The disposals underline how trends have moved on. Announcing the sale to Heartland last month, Glanbia said SlimFast “performed strongly in its initial years” but added “consumer behaviours around weight loss” had changed since Covid-19 with more interest in high-protein products.
UK owners Supreme, perhaps unsurprisingly, believes SlimFast can capitalise on current trends.
In its stock-exchange filing this week, the company said: “Supreme believes that SlimFast is ideally placed to capitalise on the growing demand for GLP-1 products, which require nutrition and protein supplementation both during treatment and as an ideal “follow-on.”
Richard Wyborn, a partner at European food-and-drinks consultancy Food Strategy Associates, believes “both are great deals for their respective owners”.
“In the UK, it’s a great acquisition for Supreme CEO Sandy Chadha and I expect it to be profitable from day one. He [Chadha] has powder facilities that mean he can in-source powder manufacturing from day one and a sales and back-office organisation that means he will need little to no extra overhead,” Wyborn says.
“Given the strength of Supreme’s position into value retailers and convenience and impulse stores, I expect him to be able to expand distribution for the brand very quickly. Chadha has previous of having done something similar with Sci-Mx and will want to diversify around from vaping given the regulatory pressure on the category so, yes, all round a very smart acquisition for the business.”
“For Heartland it’s a bit different, the US Slimfast business has been under real pressure, and I suspect there it’s more about being able to acquire a brand that is aligned with its goal for a reasonable sum of money given the scale of the turnaround that is required.”
Old diets die hard
The world of dieting has transformed since SlimFast first hit the scene in the 1970s. What consumers are looking for in terms of health and nutrition has changed and those old-school, ultra-processed SlimFast shakes seemingly don’t have the same appeal anymore.
Consumers are increasingly interested in eating healthy foods instead of relying on synthetic meal replacements. As a result, there is much more focus on sustainable lifestyle changes, not just quick fixes.
Joshua Schall, owner of US brand consultancy J. Schall Consulting, says: “The most difficult task will be flipping the historical SlimFast brand messaging around its meal replacement shakes from this negative ‘restriction diet’ emphasis to a more positive, proactive convenient foundational nutrition focus.”
He continues: “Admittedly, Heartland Food Products Group wasn’t my predicted landing spot for SlimFast. But, while the Heartland Food Products Group brand portfolio architecture is a bit wonky, SlimFast and Splenda arguably conjoin across two of the biggest consumer needs (i.e. weight management and sugar reduction) shaping the future of nutrition.
“Heartland will likely expand the SlimFast product portfolio, believing the answer can be found by delivering trusted solutions for every ‘nutritional gap’ opportunity arising within this new era of weight management.
“But over the last decade, SlimFast has been chasing off-brand product trends and that has unfortunately totally wrecked any semblance of brand strategy and emotional connection with consumers.”
Consumers want better-for-you snacks that fit into busy lives. I think SlimFast’s heritage brand gives them credibility to move into this space
Ivan Torossian, GlobalData
Schall says consumers’ approach to weight management is “shifting away from traditional, willpower-based dieting toward integrative and personalised health solutions”. He adds: “Slimfast cannot get caught up ‘trying to be everything to everyone’ and must focus on supporting the health needs of its core customers.”
Renovation of products is needed, GlobalData’s Torossian argues. He thinks SlimFast should focus on “high-quality meal-replacement shakes/smoothies but upgrade, e.g. premium protein (20g+), low/er sugar, clean label and better flavours.”
He also suggests the new owners take the brand into on-the-go formats, such as snack bars because “convenience remains a strong driver.”
Torossian adds: “Consumers want better-for-you snacks that fit into busy lives. I think SlimFast’s heritage brand gives them credibility to move into this space.”
GLP-1 – threat or opportunity?
In recent years, the options open to consumers to eat more healthily have exploded and SlimFast has struggled to keep up.
The market ranges from a selection of competing protein shakes and bars to apps that track your every meal.
The latest development has been the introduction of GLP-1 weight-loss drugs like Wegovy and Ozempic. In 2023, SlimFast reportedly saw its sales plummet by 33% thanks to the rise of these drugs, according to Bloomberg.
Wyborn says the UK and US weight management category will “absolutely be under pressure” from the rise of GLP-1 medications.
However, he adds: “The silver lining in an otherwise very dark cloud for the sector is that the brand speaks to and has been bought by precisely those people who are adopting these medications.
“One effect of taking GLP-1 medications is the need to maintain your muscle mass as you lose weight, so, if a brand like Slimfast that already talks to these consumers can successfully reposition around protein, then it’s conceivable it could return to sustained growth – the question is whether they can pull it off.”
In terms of age demographic, Torossian believes that consumers aged 30-55 that are “seeking weight-management and metabolic health” can present an opportunity for SlimFast’s new owners?
He says: “This is a large, somewhat underserved category. Many are past the ‘fast weight loss’ mentality and now looking for sustainable, manageable solutions.
“That age group is also heavy on consumers using or interested in GLP-1 drugs/metabolic‐health solutions… there is growing crossover between pharmaceutical weight management and nutrition support.”
Route to revitalisation
In the end, it seems that for many, the days of relying on a simple, processed shake to lose weight are over.
Schall says “anything is possible” but argues the “chance of getting back to the heyday of SlimFast, both in terms of market influence or financially, would be a statistical anomaly.”
However, there is still hope for the SlimFast brand. Torossian believes the new owners can revitalise the brand but would take a “deliberate multipronged approach.”
He adds: “The brand is not going to have a revival simply by relaunching with the same formula and expecting past performance to return… but there are levers they could pull.
“For example, product innovation: new formats, new occasions. Think high-protein, low-sugar, clean-label; and depending on the market maybe even DTC bundles that integrate a platform of coaching/community.
“Not to mention that both, Supreme and Heartland, should bring fresh product development to make the brand feel contemporary again.”
Ultimately, he believes the new owners will need to “invest in a refreshed brand story emphasising ‘sustainable weight-management’ rather than just the old ‘shake and lose weight fast’.”
“The overarching strategy should link the brand to broader wellness trends. For example, the growing interest in gut health, functional foods (protein, energy), and supporting the lifestyles of GLP-1 drug users.
“So, yes, they can revitalise the brand but only if they treat it as a turnaround rather than a quiet maintenance.”
