19 January 2023, New Delhi: ITC is fortifying its presence in the Rs. 45,000 crores, fast growing, nutrition-led healthy foods space, with a proposed strategic investment in M/s. Sproutlife Foods Private Limited (SFPL), a Direct-to-Consumer (D2C) Start-Up engaged in the manufacture and sale of innovative products catering to health-conscious consumers under the clean label, new-age digital-first brand ‘Yoga Bar’.
ITC will acquire 100% of SFPL over a period of 3 to 4 years. 47.5% stake in SFPL will be acquired, in tranches, by March 31st, 2025; and the balance stake will be acquired, basis pre-defined valuation criteria, subject to other conditions agreed to in the binding documents.
Anchored on the codes of ‘All Natural and No Artificial Ingredients’, Yoga Bar today has built a market winning product portfolio including Nutrition Bars, Muesli, Oats and Cereals. Yoga Bar currently has a high salience of on-line sales (D2C, e-Commerce platforms etc.) with growing presence in offline stores. In a relatively short span of time, Yoga Bar has established itself as a leader in the Bars segment and has built a strong market position in the Muesli segment.
The acquisition will enable ITC to augment its future-ready portfolio and enhance market presence in the ‘Good for You’ space which currently includes Aashirvaad Multi-Grain Atta, Aashirvaad Nature’s Super Foods, Farmlite range of biscuits, Sunfeast Protein Shake, B Natural Nutrilite ABC Beverage among others. Yoga Bar is expected to be rapidly scaled up, leveraging ITC’s enterprise strengths in areas such as sales & distribution, sourcing, product development, and digital.
This investment is in line with the ‘ITC Next’ strategy articulated by Chairman Mr. Sanjiv Puri that focuses also on building a future-ready portfolio of products that serve evolving consumer needs.
Commenting on this acquisition, Mr. Hemant Malik, Divisional Chief Executive, Foods Division, ITC Limited stated, “We believe that this investment is an exciting opportunity that aligns with ITC’s Foods Business’ aspiration to build a formidable portfolio in the nutrition-led healthy foods space. We look forward to scaling the Yoga Bar brand offering superior and healthy consumer choices. Within a short span of time, Yoga Bar has established itself as a leading brand in the healthy foods space, driven by impactful market positioning and a range of innovative products.”
Commenting on this transaction, Ms. Suhasini Sampath Kumar and Ms. Anindita Sampath Kumar, co-founders, said, “We are delighted to join hands with ITC in Yoga Bar’s next phase of growth. ITC has a long history of building world-class brands, leveraging its core competencies which encompass superior understanding of the consumer, strong backward linkages with agri supply chain and a deep and wide distribution network. We are confident that this partnership will add to Yoga Bar’s competitive advantage and take it to the next level from the current Annualised Run Rate of over Rs.100 crores. We are delighted that ITC and Yoga Bar will work together to build one of the largest brands in the healthy foods space.”
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