WhiteWave Foods Co., Denver, in June announced it has agreed to acquire Vega, a Vancouver, British Columbia-based maker of plant-based nutrition products, for approximately US$550 million in cash. Vega primarily makes powdered shakes and snack bars.
Vega generated sales of approximately US$100 million over the past 12 months and has been growing at a rate of over 30 percent.
"With its distinctive product offering and opportunities to extend its line, Vega is in the early stages of its growth cycle," WhiteWave said in the announcement. "It is also well positioned to capitalize on the favorable plant-based eating trends and upside potential that exist in the fast-growing $8.6 billion nutritional powders, bars and ready-to-drink beverages market, where consumers are increasingly seeking healthy solutions from plant-based offerings."
It also represents an opportunity for WhiteWave to extend its plant-based foods and beverages platform into nutritional powders and bars. WhiteWave owns the Silk and So Delicious plant-based beverage brands.
Vega was founded in 2004 by Charles Chang, who remains majority owner and president. VMG Partners also owns a share. The original formulator of Vega products was Brendan Brazier, a former professional Ironman triathlete.
Vega’s products are all plant-based and provide a good source of protein, omega-3s, fiber, vitamins, probiotics and antioxidants. WhiteWave said Vega holds a strong market position in the plant-based nutrition category across Canada and the U.S., with a top-tier retail customer base and loyal consumer following ranging from general wellness-seekers to athletes.