EU Business Round-Up: BioGaia Seeks Bigger Slice Of UK, Acino Gets Middle East Backers, Boots Moves Into Advertising
Executive Summary
The latest European consumer health business news: BioGaia to distribute full probiotics portfolio in the UK; UAE's ADQ snaps up Switzerland's Acino; and Boots launches a personalized ad offering in the UK.
BioGaia Takes Control In UK
Sweden’s BioGaia is set to take full control of its sales in the UK and launch its entire product portfolio in the market.
For the past eight years, BioGaia has offered a limited range of its probiotics in the UK through a distribution partner.
Beginning in November 2021, BioGaia will sell its products under its own management in the UK, through Amazon.co.uk and in selected pharmacy chains both online and offline. BioGaia’s offering includes probiotics for gut health, oral health, immune support and pregnancy.
While the UK was a “medium-size” market for probiotic products, BioGaia said there was potential for growth, given that the broader vitamins and dietary supplements market was valued at around £1.5bn ($2.1bn). “I am optimistic about our opportunities for increasing sales in the UK and am looking forward with confidence to developments in the UK market in the near future,” commented BioGaia CEO Isabelle Ducellier. “With our clinically tested probiotic products – something we know that many consumers demand – we have a strong offering for the UK market.”
Explaining the rationale for taking back distribution of its products in the UK, BioGaia said the decision was inline with its overall strategy of increasing business-to-consumer (B2C) sales and sales via the company’s e-commerce solution.
“Based on our global B2C strategy, it is a natural step for us to start our own distribution in the UK after our own distribution initiative in the Finnish market,” noted Ducellier. (Also see "EU Business Round-Up: Unilever Steps Up Sustainability, BioGaia Makes Finnish Move, Monat Heads To Spain" - HBW Insight, 21 May, 2021.)
BioGaia is currently implementing a “very intensive online strategy,” after its European sales struggled during the COVID-19 pandemic due to the company’s over-reliance on the pharmacy channel. (Also see "Sweden's BioGaia Grows Share In Latin America As Europe Struggles" - HBW Insight, 20 Aug, 2021.)
Acino Acquired By ADQ
State-backed Abu Dhabi Developmental Holding Company (ADQ) is set to acquire Switzerland-based Acino Holding from its private-equity owners Nordic Capital and Avista Capital Partners for an undisclosed sum. The transaction is subject to customary closing conditions, including regulatory approvals.
With its own sales force and distribution partnerships, Acino is active in more than 90 countries across the Middle East, Africa, Latin America, Russia, Ukraine and the CIS region offering OTC drugs and dietary supplements, as well as prescription pharmaceuticals.
Commenting on the deal, ADQ said Acino’s strong management, commercialization capabilities, and diverse product portfolio across many emerging markets would support its own long-term strategy of “developing its integrated pharma platform and meeting the need for high-quality, affordable medicines in the UAE and the broader region.”
“Our aim for ADQ’s healthcare and pharma cluster is to ensure access to affordable, essential medicines and advance new, innovative treatments that help improve people’s lives,” said the firm’s executive director of Healthcare & Pharma Fahad Al Qassim. “With the company’s industry experience and broad reach, Acino will enable ADQ to deliver an even greater level of growth, innovation and ambition across the pharma value chain.”
Earlier this year, Acino strengthened its dietary supplements offering with the acquisition of a portfolio of brands from Russia’s IlmixGroup. The deal covers a total of eight products, including supplements and prescription pharmaceutical assets in the areas of gynecology, gynecologic oncology, urology and dermatology. (Also see "EU Business Round-Up: Gilbert Grabs Grimberg, Navamedic Adds Brain Health Probiotic, Acino Acquires Russian Portfolio" - HBW Insight, 19 Apr, 2021.)
Prior to that, Acino snapped up a portfolio of OTC and prescription drugs marketed mainly across the Middle East and Africa from Japan’s Takeda Pharmaceutical. (Also see "Takeda Offloads Emerging Market OTCs to Acino" - HBW Insight, 15 Oct, 2019.)
Boots Offers Precision Advertising
Pharmacy giant Walgreens Boots Alliance has launched Boots Media Group (BMG) in the UK to help health and beauty brands deliver personalized, relevant campaigns to consumers in the market.
Described as a “full-service advertising offering rooted in insights and rich first-party data,” BMG would help brands maximize return on investment (ROI) by combining creativity and advanced technology, explained Boots UK.
BMG had the ability to deliver precision-targeted advertising campaigns, Boots claimed, thanks to the combination of 2,400 bricks-and-mortar stores, its e-commerce offering and loyalty card data from over 17m active customers.
“At Boots UK, we have an unparalleled insight into our customers’ needs and shopping habits,” commented the retailer’s chief marketing officer Pete Markey. “By unlocking the power of our first-party data and giving access to our marketing channels to brands, we can help accelerate ROI by delivering relevant experiences to customers and ultimately enhance the shopping experience for them.”