13/11/20 – Confectionery / Nutraceuticals / Supplements / Vitamins / TopGum / Gummies
TopGum secures investment to accelerate growth in ‘functional gummy’ sales
TopGum Industries Ltd, an innovative functional gummy supplement manufacturer for nutraceutical marketers, has secured investment from Tel Aviv-based AP Partners Fund. The new funding is expected to accelerate the firm’s growth and expand production capacity, R&D and marketing activities to North America and Europe in 2021.
TopGum entered the Israeli confectionery market in 2004, and within a few years, the company rose to become a leading gummy confectionery producer. In 2019, TopGum launched its functional gummy supplements portfolio. The move followed intensive R&D efforts and sizeable capital investment in a modern, GMP- and UL-certified facility.
Gummy supplement sales to hit $8.5bn in 2022
“The new investment allows us to increase capacity significantly and expand our activity to the US and European markets,” said Amichai Bar-Nir, CEO of TopGum. “As part of the Israeli FoodTech ecosystem, TopGum is working diligently to innovate this popular delivery form, supporting our customers assiduously to stand up in the crowd with differentiated, high quality products.”
According to the 2019 NBJ Supplement Business Report, 2018 gummy supplement sales hit US$5.5 billion and made up 12.5 per cent of the dietary supplements market. The category is forecast to grow at about 12 per cent per year and reach US$8.5 billion in 2022.
“Clean label”, with “superior flavor”
While the significant advantages of gummy supplements in comparison to other delivery forms drive the category’s impressive growth, manufacturing high-quality gummies with extended shelf life and attractive flavor is a significant challenge. Using proprietary cutting-edge technology, TopGum has overcome those challenges, while implementing high food-tech capabilities to take functional gummies to the next level.
AP Partners Fund, a private equity fund, focuses on product-oriented enterprises with high growth prospective. Hagai Stadler, founding partner of AP Partners and the former CEO of Algatech (the leading producer of high-value active ingredients delivered from microalgae) will act as Chairman of the Board for TopGum.
“As a major partner at TopGum, we will take a part in its journey to become one of the leading gummy-based supplement producers,” states Stadler. ”We were impressed by the company’s vision to provide clean-label, innovative gummy supplements with superior flavour, which will advance gummy formulations to the next level. AP Partners will work closely with TopGum management to unlock the vast potential of its innovative product line and stimulate growth.”