Singapore’s Envictus sells loss-making sports nutrition unit to NZ blender and packer
Describing it as a “loss-making” business in a statement, the investment holding company whose portfolios include trading, frozen food, food services, nutrition, and food processing, said it would have planned to shut down the sports nutrition unit and written off the assets if it had not been sold.
Naturalac Nutrition sells its sports nutrition products under the brand name Horleys, which include protein powder, beverages and bars.
NutraIngredients-Asia understands that sale, which was worth NZ$400k, was first initiated by Envictus to Hansells Masterton before Christmas and the agreement was signed on Tuesday (Feb 11).
Speaking to NutraIngredients-Asia, Hansells Masterton executive chairman Alan Stewart, said the purchase was a “good fit” for the company in terms of expanding the product range and earning the profit margin.
“We have for some time manufactured the Horleys Replace products (a brand under Naturalac Nutrition) in our Masterton factory as a contract manufacturer and now, we see this as an opportunity to increase the product range and also gain the margin for selling the products so it is a good fit for us.
“We pick up brand names that we need to expand our business. (This is) a relatively small purchase with some good potential.”
After the acquisition, the company will continue to produce its existing range of 100 different products, ranging from milk powder, desserts, yogurt mixes, to vitamin bars, collagen, and whey protein for sports nutrition.
As for product range expansion, the company was unable to reveal further details but said it had a big capacity to do more.
Currently, the company sells its products to countries such as China and Vietnam, on top of the domestic market.
Turning loss to profit
Hansells Masterton is positive about the prospect of buying over the “loss-making” sports nutrition unit from Envictus as it believes its existing infrastructure puts it in a good stead.
“We have all the premises available; we have our own warehouse and we have our own distribution networks and so for us, it was more profitable than it was for them.
“It is an addition to our existing business, instead of being a standalone business. Small standalone business will have a lot of cost.”
The biggest difference for the company however, is the need to have be involved in the entire supply chain process, starting from production to sales and marketing.
