New Age Beverages is continuing upon its aggressive expansion strategy and today announced that it has acquired Premier Micronutrient Corporation (PMC), a maker of nutrient-dense supplements.
In picking up PMC, founded in 2000 to develop formulations in cooperation with the U.S. Department of Defense and National Aeronautics and Space Administration (NASA), New Age secured intellectual property — including 10 major patents and patents pending in various areas of micronutrient-based treatments — that it plans to use to fuel product innovation in both the short and long term. The no-cash agreement brings 100 percent of the assets and interests of PMC, its portfolio of products, intellectual property, and the formulas for existing and planned healthy functional beverage products for the pharmacy, medical, sports and military, and other industries.
The move marks the third acquisition for New Age this year, following the purchase of Maverick Brands, makers of Coco Libre, and the full assets of Marley Beverage Company in April.
Speaking with BevNET, New Age CEO Brent Willis said that the PMC acquisition was another step forward in the company’s goal to be the global leader in healthy functional beverages, and that the research and scientific expertise gained in the deal will allow New Age to continue exploring new sales opportunities, including those within the medical industry, with less competitive intensity.
“Today, the products that address things like cardiovascular health or weight management have a delivery system of pills and powders,” he said. “That’s the evolution: it goes from pills to powders to a ready-to-drink, more consumer friendly and more efficacious delivery system.”
In addition to patents for micronutrient formulations for diabetes treatment, radiation, and other applications, PMC brings medical expertise, research, clinical trial insight and a strong reputation within the scientific community into the fold at New Age’s Health Sciences Division.
PediaAde, an organic coconut water-based rehydration drink, will be the first product to be released with input from the division when it debuts later this summer. Willis said the beverage, formulated to alleviate symptoms associated with significant dehydration, is indicative of the company’s strategy of identifying existing consumer behaviors and segments and designing new products around them.
“When you have the credibility and the science, and you start in the medical channel and pharmacy channel, ultimately when you want to take it out to broad based consumers it’s just that much more supported in terms of the benefits,” said Willis. “We want to be building off of existing large need states and segments versus coming up with crazy healthy niches.”
Willis pointed toward a soon-to-be-released new product, developed by the Health Sciences division in conjunction with scientists at the Mayo Clinic and the Cleveland Clinic, aimed at reducing post-surgery stress and recovery time.
“The public is demanding that credible information done with legitimate studies, which we have, and that drives a hunger for products that are not a pill that a doctor prescribes from a pharmacy,” said Dr. Jerry Haase, chief scientific officer for the Health Sciences Division. “The number of interesting products that fill a definite need in the marketplace that we are developing and will develop is quite an impressive list.”
Reaffirming the company’s goal to push differentiated products in segments relatively unexplored by its competitors, Willis said the PMC acquisition was indicative of his overall vision for New Age’s place on the industry landscape.
“We have about an $85 million run rate with revenue,” he said. “We can’t afford to waste time and do little niche kind of things.”