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June 15, 2021

US-based FoodPharma sells majority stake to New Harbor Capital

The Chicago-based investment firm said the deal will help FoodPharma expand into new product areas.

FoodPharma, a US contract manufacturer of functional and nutritional foods, has sold a majority stake in the business to local private-equity firm New Harbor Capital.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The Chicago-based investment firm said the deal, for an undisclosed sum, will help FoodPharma expand into new product areas and new markets.

FoodPharma, based in Santa Fe Springs, California, has a portfolio of more than 500 “proprietary formulas and recipes”, as well as in-house research, development, and formulation capabilities

Founded in 2000, the company is said to have a market-leading position in the soft chew category, specifically in bariatric and weight-loss nutrition. It also supplies protein and nutrition bars, bites and other confectionery items.

The company serves customers and channels, including CPG, private label, and speciality brands. It employs more than 90 people in two California facilities in Santa Fe Springs and Long Beach.

New Harbor said it is partnering with FoodPharma’s founder and CEO, Glen Marinelli, to “create a leading food science company focused on the research, development, and manufacturing of high-quality, functional food products”.

It said it was drawn to FoodPharma due to its “unique positioning as a full-service contract manufacturer, its innovative formulation and development capabilities, its healthcare industry applications, and its market-differentiating position in several product categories”.

New Harbor partner Tom Formolo said: “After spending significant time researching the nutrition and functional foods industry, we are very excited to be partnering with Glen Marinelli through an investment in his innovative and high-quality company.

“We are eager to leverage FoodPharma’s excellent reputation and broad capabilities as we expand into new product categories, customers, industry segments and geographies to build a leader in the functional foods industry.”

FoodPharma’s Marinelli said: “I am thrilled to form this partnership with the New Harbor Capital team. From the very beginning, it was clear that our organisations shared similar values and commitments to innovation and growth. New Harbor’s extensive experience working with founder-led companies in relevant industries to ours has already started to elevate our business.”

Just Food has asked New Harbor for further details of which new product areas and territories it may be targeting for FoodPharma post-deal.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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