• by Steve Ellwanger , February 3, 2022

Nestlé Health Science is expanding its footprint in plant-based nutrition with the acquisition of a majority stake in California-based Orgain.

Founded in 2009, Orgain is the leading plant-based protein powder and organic nutritional protein ready-to-drink shake in the United States, according to Nestlé.

The company did not disclose the size of its stake in Orgain or what it will pay, but it has an option to acquire the rest of Orgain by 2024.

Los Angeles-based Butterfly Equity bought a majority stake in Orgain Inc. two years ago. In the deal with Nestlé, Butterfly and Orgain founder Dr. Andrew Abraham retain minority stakes in Orgain.

Orgain's products also include snack bars, and its Orgain Kids sub-brand markets shakes and bars.

On the adult side, Orgain has partnered with Duncan Robinson of the Miami Heat basketball team, as seen in this video.

The pandemic has boosted consumers’ desire for protein—particularly plant-based—in all forms of beverages and foods and especially for breakfast occasions.

A national survey of primary grocery shoppers last fall by IRI showed that protein powders and shakes were among the top breakfast choices among Gen Z and millennials, older millennials, Gen X and younger baby boomers.

Smoothies have become a common way of ingesting protein, IRI’s Sally Lyons Wyatt, executive vice president and practice leader, client insights, said in a recent webinar.

“This kind of getting nutrition from a beverage standpoint has been continuing to grow and grow and grow over time. These protein powders and the different shakes have definitely taken a dominant role,” Wyatt noted.

Over the past several years, Nestlé Health Science parent Nestlé SA has been on a multibillion-dollar acquisition spree in health and wellness products.

Three years ago, Nestlé acquired Canadian vitamin maker Atrium Innovations—owner of the Garden of Life brand—for some $2.3 billion. In the fall of 2019, Garden of Life entered the ready-to-drink segment with two lines of protein beverages.

Last year, Nestlé shelled out $5.75 billion for The Bountiful Company and its brand portfolio that included Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride.