ITC plans to acquire D2C health food brand Yoga Bar; details here

ITC Limited notified on Tuesday that it is planning to acquire Direct-to-Consumer (D2C) health food brand Yoga Bar. The fast-moving consumer goods (FMCG) major is going to acquire 100 per cent of Sproutlife Foods Private Limited (SFPL), which sells and manufactures items under the brand Yoga Bar, over a period of three to five years. Initially, ITC will purchase a 39.4 per cent stake for Rs 175 crore. A further infusion of Rs 80 crore for a total 47.5 per cent stake is going to be done by 31 March 2025. The balance stake is going to be bought on the basis of pre-defined valuation criteria, subject to other agreed conditions in the binding documents. According to ITC, Yoga Bar is likely to scale up rapidly, leveraging ITC’s enterprise strengths in areas like sales and distributions, product development, sourcing, and digital. This investment is in accordance with the “ITC Next” strategy that focuses on developing a future-ready portfolio of products, as articulated by Sanjiv Puri, chairman of the conglomerate. Hemant Malik, Divisional Chief Executive, Foods Division, ITC Ltd, said that they look forward to scaling the Yoga Bar brand, providing consumers with healthy and superior choices. He went on to add that Yoga Bar has established itself as a leading brand in the healthy foods space within a short span of time. Malik further said that this has been driven by impactful market positioning and a range of innovative products. Suhasini Sampath and Anindita Sampath Kumar, co-founders of Yoga Bar said, “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 crore.” The co-founders added that they are delighted that ITC and Yoga Bar are going to work together to build one of the biggest brands in the healthy foods space. Yoga Bar has been positioned as a digital-first brand and presently has high salience of online sales with an increasing presence in offline stores. The product portfolio of Yoga Bar includes nutrition bars, oats, muesli, and cereals. The FY22 turnover of Yoga Bar stood at Rs 68 billion, and it has a market size of Rs 4,5000 crore. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.