Israel-headquartered functional confectionery company TopGum has secured a multimillion-dollar investment from private equity firm AP Partners.
Founded in 2004, TopGum is one of the largest producers of gummy confectionery products in Israel. The company first released its range of functional gummies for nutraceutical applications in 2019.
According to a statement from the company, this latest investment will help the company expand production capacity, R&D and marketing activities to North America and Europe in 2021, in order to stimulate growth.
2018 gummy supplement sales hit $5.5 billion and made up 12.5% of the dietary supplements market, according to figures in the 2019 NBJ Supplement Business Report. The category is forecast to grow at about 12% per year and reach $8.5 billion in 2022.
Amichai Bar-Nir, CEO of TopGum, said: “The new investment allows us to increase capacity significantly and expand our activity to the US and the European markets.
“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.”
Hagai Stadler, founding partner of AP Partners and the former CEO of Algatech, added: “As a major partner at TopGum, we will take a part in its journey to become one of the leading gummy-based supplement producers.
”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.”
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