Nutraceutical gummies producer expands into Europe
After making a name for itself as a leading Israeli confectionery producer since 2004, last year TopGum launched its functional gummy supplements portfolio, and now it aims to expand production globally.
“The new investment allows us to increase capacity significantly and expand our activity to US and the European markets,” says Amichai Bar-Nir, CEO of TopGum. “As part of the Israeli FoodTech ecosystem, TopGum is working diligently to innovate this popular delivery form, supporting our customers assiduously to stand up in the crowd with differentiated, high quality products.”
According to the 2019 NBJ Supplement Business Report, 2018 gummy supplement sales hit US$5.5B and made up 12.5% of the dietary supplements market. The category is forecast to grow at about 12% per year and reach US$8.5B in 2022.
While demand is high, manufacturing high-quality gummies with extended shelf life and attractive flavor is a significant challenge. Using proprietary cutting-edge technology, TopGum says it has overcome these challenges as well as implementing high food-tech capabilities to take functional gummies to the next level.
AP Partners Fund, a private equity fund, focuses on product-oriented enterprises with high growth prospective. Hagai Stadler, founding partner of AP Partners and the former CEO of Algatech (producer microalgae ingredients) will act as Chairman of the Board for TopGum.
“As a major partner at TopGum, we will take a part in its journey to become one of the leading gummy-based supplement producers,” says Stadler. ”We were impressed by the company’s vision to provide clean-label, innovative gummy supplements with superior flavor, which will advance gummy formulations to the next level. AP Partners will work closely with TopGum management to unlock the vast potential of its innovative product line and stimulate growth.”
