Since acquiring Optimum Nutrition in 2008 and moving into the sports nutrition industry, Glanbia has transformed its business into a world-class multinational with operations across the globe.

However, Glanbia did not just fall into the sports nutrition category, according to Hugh McGuire, who was speaking at the 2015 ASA annual conference in Kilkenny.

“Sports nutrition was an adjacency business for us. We were always supplying the ingredients to these companies before we started making acquisitions,” he said.

According to McGuire, the sports nutrition sector was something the group had been looking at for two to three years. He added that losing out on acquiring Maxi Muscle in 2007 was devastating for all involved – yet they got what they wanted in August 2008 when the group completed the acquisition of Optimum Nutrition.

“It’s fair to say we were outside our comfort zone when we made the Optimum Nutrition acquisition. It was a brave move for the company at the time, but it has been a fantastic transformation for Glanbia,” said McGuire.

12% global market share

The transformation has been such that Glanbia now holds a 12% share of the $10.1bn global sports nutrition market, with the majority of sales coming from the US.

While the move into sports nutrition has been hugely successful for the group, McGuire admits the group was lucky to acquire strong brands over the last number of years.

“We inherited global brands with a strong US heritage and this has been critically important for us,” he said.

Added to that, the fundamentals of the business are extremely positive as the focus from consumers on leading active lifestyles continues to grow. In the last five years alone, McGuire says there has been a 50% increase in the use of sports nutrition products in the US.

Also, the continued urbanisation of the global population increases the westernisation of the diets of people in developing countries.

With these fundamentals in mind, McGuire was extremely positive about the future of the business. He added that, right now, the group is heavily invested in marketing and preserving its brands – something he says Glanbia will protect at all costs.

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