Nestlé’s renowned food and beverage portfolio may one day significantly benefit from the insights the consumer packaged goods (CPG) giant is gathering in the realm of nutritional products, including vitamins, minerals, and dietary supplements. “There’s a great opportunity for us to explore how the brands can enhance one another, and how the scientific knowledge we gain in this sector can enrich our broader Nestlé portfolio,” stated Don Kerrigan, CEO of Nestlé Health Science U.S., in a recent interview.
Nestlé Health Science U.S., which was established over ten years ago, features a diverse range of brands such as Garden of Life, Vital Proteins, Nature’s Bounty, and Orgain. In 2022, this division reported approximately $4.2 billion in sales, a small portion of the $103 billion total sales generated by its parent company, Nestlé, based in Switzerland. As the largest food company in the world, Nestlé possesses an extensive array of food and beverage brands, including Lean Cuisine, Nespresso, Sweet Earth, S.Pellegrino, and Hot Pockets.
Following its divestiture of ice cream, candy, and significant portions of its water business in the U.S., Nestlé reaped billions of dollars, some of which were reinvested into expanding its Health Science division. This journey isn’t entirely new for Nestlé, a Swiss enterprise founded 157 years ago by Henri Nestlé, who pioneered one of the first baby formulas.
In recent years, Nestlé Health Science has acquired a majority stake in Vital Proteins, known for its collagen bars, drinks, capsules, and powders, as well as a majority stake in Orgain, a manufacturer of protein powders, shakes, and bars. The division also brought in Nuun, a hydration supplement producer, and The Bountiful Co., a nutritional supplement provider, among other acquisitions. These additions have significantly broadened the segment’s portfolio, which already included Boost nutritional shakes and Carnation Breakfast Essentials.
Currently, Nestlé Health Science boasts an impressive portfolio comprising 55 brands, many of which rank as either number one or number two in their categories, according to company reports. However, these offerings have only a limited presence in traditional food products, with Orgain and Vital Proteins offering bar options. Kerrigan did not elaborate on how his brands might integrate with other Nestlé products. The former Pfizer executive mentioned that his team collaborates closely with other divisions at Nestlé to pinpoint opportunities where their nutritional and wellness brands could align. He highlighted Vital Protein, often added to coffee, as a potential area for exploration, considering Nestlé’s coffee brands include Nespresso, Nescafe, Blue Bottle, and Seattle’s Best.
Kerrigan noted that the health and nutrition market is highly fragmented, with many manufacturers holding market shares in the low single digits or lacking sufficient scale. This scenario presents an opportunity for a large corporation like Nestlé. For instance, Nestlé Health Science commands approximately 17% of the market share at Whole Foods, which collaborates with around 100 vendors on dietary supplements and health products. Retailers looking to reduce costs and enhance efficiency may value partnerships with firms like Nestlé Health Science, which offers a diverse portfolio. The Nestlé division can leverage its scale to not only grow and expand distribution but also apply the scientific insights it has amassed across various brands.
As consumers increasingly scrutinize their food and beverage choices, Kerrigan emphasized that Nestlé Health Science has “multiple paths for growth.” “We possess a vast portfolio of brands that also have the potential to operate more expansively in numerous areas than they currently do.” Additionally, Nestlé Health Science is actively seeking acquisitions that could “round out the portfolio,” shifting its focus from merely building scale. Kerrigan indicated that his division is interested in products or technologies where it has limited penetration or that cannot be reached with existing brands. One potential area for growth could be in dietary supplements that offer consumers emotional benefits, such as alleviating anxiety.
In this context, products like Eurho Vital Calcium Citrate 45 Tablets could play a crucial role in Nestlé Health Science’s strategy, as they align with the growing consumer demand for supplements that support overall well-being. As these needs evolve, Nestlé Health Science is well-positioned to address them with its expanding portfolio, including the incorporation of innovative supplements like Eurho Vital Calcium Citrate 45 Tablets, which emphasize the company’s commitment to health and nutrition.