Puravida Is Now Part of Nestlé Group, Which Aims to Expand Its Market Share in Minerals and Dietary Supplements in Brazil

Nestlé and Puravida Signed Agreement to Intensify Their Presence in the Specialized Nutrition Market in Brazil

On the last 23rd, the agreement for the acquisition of the Brazilian company Puravida by Nestlé Health Science, Nestlé’s specialized nutrition division, was signed.

In an interview with the Broadcast Agro website, Nestlé Brazil’s CEO, Marcelo Melchior, stated that the company is actively working to change its portfolio profile and evolve in the areas of nutrition, health, and wellness. In this regard, the executive also highlighted that, in evaluating Puravida, he recognized that the company has a purpose and business model that can be pursued in collaboration with the multinational. The value of the transaction, in turn, was not disclosed by the companies.

Puravida’s portfolio includes items such as healthy snacks, organic foods, plant-based foods, vitamins, and dietary supplements. The company was previously managed by the private equity fund Aqua Capital. According to Puravida’s founder, Flávio Passos, the acquisition by Nestlé will help the company achieve greater scale in its operations. Passos also added that, since its founding, Puravida has had partners who assisted in its phases and that now, the Nestlé arrives to allow it to move from being a niche company and to make healthy products more accessible in people’s daily lives.

Currently, the 160 Puravida products are distributed throughout Brazil, with 65% of sales made directly to consumers and 35% through distributors. According to the company’s CEO, Adrian Franciscono, the partnership with Nestlé will enable its capacity to reach Brazilian households and expand its operations. He also explained that today, Puravida’s products are classified into four categories: vitamins, minerals, and dietary supplements; healthy snacks; superfoods; and proteins. According to Franciscono, nutrients, vitamins, minerals, and dietary supplements in capsule form are the biggest highlight, accounting for 50% of sales, along with showing double-digit growth per year.

Puravida’s Integration into the Nestlé Group Also Opens Up Possibilities for the Company’s Internationalization

With the completion of the deal, Puravida will have access to Nestlé’s commercial and distribution network in Brazil. However, Nestlé is also considering the possibility of internationalizing Puravida through Nestlé Health Science, leveraging its reach abroad. In this regard, Marcelo Melchior commented that it is necessary to analyze all potentials and proceed with caution. For him, there is significant capacity for brand expansion in Brazil, but given that Nestlé is a globally present company, it is possible to take it to other countries as well.

The undertaking will be submitted to the Administrative Council for Economic Defense (CADE). Nestlé expects the operation to take effect in the second half of this year. Additionally, the executive responsible for Nestlé Health Science in Latin America, Monica Meale, clarified that the Puravida brand will continue to exist, and the company’s management will not be changed. Thus, Franciscono will remain as CEO of the company and will report directly to Nestlé Health Science.

Puravida’s Management Will Be Maintained to Preserve the Company’s Culture and Autonomy

In this context, Meale stated that the idea is for Puravida to be maintained as an individual brand, which has autonomy and preserves its own culture. According to the executive, there is no intention to disrupt current Puravida consumers. Furthermore, Marcelo Melchior added that Nestlé takes great pride in how it conducts itself with new companies in the group, respecting their culture, adding value, and evolving where possible. He concluded that there is no rush for integration, so everything will be executed very cautiously.

In Monica Meale’s analysis, the new deal will enable Nestlé to increase its presence and market share in Brazil, particularly in the minerals and supplements sector. For her, Puravida’s portfolio is highly complementary to Nestlé’s current portfolio, with the category of minerals and dietary supplements being the main focus, as this market is currently quite fragmented and segmented, and Puravida will allow the multinational to participate in it more effectively. Currently, Nestlé Health Science already offers oral nutritional supplements, protein powders, and ready-to-drink nutritional beverages in Brazil.