Danone expands medical nutrition portfolio with Functional Formularies acquisition

USA – Danone has made a significant move to bolster its medical nutrition portfolio by acquiring Functional Formularies, a US-based whole foods tube-feeding business, from private-equity firm Swander Pace Capital.

The acquisition, for an undisclosed amount, is set to enhance Danone’s offerings for individuals with special medical needs, particularly in the enteral tube-feeding segment.

Juergen Esser, Deputy CEO and CFO at Danone highlighted the complementary nature of Functional Formularies’ product portfolio with Danone’s existing Real Food Blends range.

Esser emphasized Danone’s commitment to supporting the nutritional needs of tube-fed families and patients through innovative and differentiated products.

“We are confident that with the addition of the greatly differentiated product portfolio of Functional Formularies, which complements our existing Real Food Blends branded range, we are even better positioned to support the nutritional needs of tube-fed families and patients.”

Functional Formularies is known for its organic, whole-food enteral feeding formulas, crafted from high-quality ingredients without artificial additives or preservatives.

Marc Gibeley, CEO of Functional Formularies, praised the collaboration with Swander Pace Capital, acknowledging their role in driving success and delivering superior ingredients to improve patient outcomes.

“I am so proud of our team’s ability to deliver high-quality ingredients to help with improved patient outcomes,” he said.

The acquisition aligns with Danone’s Renew Danone strategy, reinforcing its position as a global leader in medical nutrition.

It underscores Danone’s dedication to providing consumers with nutritional solutions that prioritize health and wellness, particularly in the growing demand for organic and whole-food products.

Danone’s specialised nutrition segment, which includes medical nutrition products, reported €8.5 billion in net sales for the full year of 2023, reflecting a 3.3% increase from 2022.

In the first quarter of 2024, specialised nutrition achieved €2.18 billion in net sales, marking a 1.9% year-on-year growth.

Danone’s recent investments in its medical nutrition segment, including factory expansions in Poland and Turkey, demonstrate its commitment to expanding its presence and offerings in this critical market segment.

With the acquisition of Functional Formularies, Danone aims to further strengthen its position in the health and nutrition sector while meeting the evolving needs of consumers with special medical requirements.

Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE