Nichols has expanded its portfolio by acquiring VitHit for €75 million in cash, approximately £64 million.
VitHit is engaged in three main segments: still beverages in PET bottles, sparkling drinks in cans, and effervescent powder products. The brand’s offerings are enhanced with eight essential vitamins, while being low in sugar and calories.
The history of VitHit is marked by both successes and challenges. Founded by Gary Lavin, a former rugby player for Leinster and Harlequins whose professional career ended due to a knee injury in the 1990s, VitHit took shape in 2000. Today, the company holds a 42% market share in the UK and is the leading functional beverage brand in the Republic of Ireland, enjoying a remarkable 97% market penetration.
However, VitHit faced significant obstacles, notably entering insolvency in 2007. During this challenging period, Lavin made the difficult decision to dismiss the entire sales team, taking on the role himself. As he recounted in an interview with The Irish Times, Lavin dedicated 18 months to personally selling the brand, traveling extensively to secure placements in 3,500 stores.
Currently, VitHit’s revenue is reported at €26.5 million, demonstrating a compound annual growth rate (CAGR) of 9.5% over the past three years.
Nichols has outlined strong organic growth potential and synergies from the acquisition, anticipating positive shareholder returns. This strategic move follows recent investments in the functional beverages sector, including the introduction of Vimto Wonderfuel and the upcoming launch of Myprotein Water later in the year.
As the focus on health continues to rise among consumers, there is an increasing expectation for products to meet these health criteria. The UK functional drinks sector is now valued at £5.8 billion and is expected to grow by 10% from 2025 to 2026.
Reflecting on the acquisition, Andrew Milne, CEO of Nichols, stated: “With its established market position, alignment with our asset-light operating model, proven profitability, and significant growth potential, VITHIT perfectly fits the acquisition profile we have been looking for and is well-aligned with our long-term growth strategy.”
He continued, “The brand has created a strong market presence in both Ireland and the United Kingdom, supported by a unique consumer appeal, high customer loyalty, and an impressively tasty portfolio of functional soft drinks.”
Milne also noted, “We believe Nichols is ideally positioned to accelerate VITHIT’s growth through our commercial expertise, established customer relationships, route-to-market strategies, and global infrastructure.”
He concluded, “The acquisition is anticipated to enhance earnings immediately, provide appealing returns for shareholders, and bolster our capacity for sustainable long-term growth. We are thrilled to welcome the VITHIT team into the Nichols family and are eager to collaborate on the substantial opportunities ahead.”