SiS Acquires PhD Nutrition for £32m; Exercise Impacts Gut Microbiota

London, United Kingdom — 16 November 2018

Science in Sport (SiS) has announced its intention to acquire fellow sports nutrition company PhD Nutrition in a deal valued at £32 million. The acquisition, primarily financed through a share offering, signals SiS's strategic move to significantly expand PhD Nutrition's international footprint, particularly targeting the United States. Euromonitor data indicates the global sports protein powder market is currently valued at $4.7 billion, driven by robust online sales and a growing consumer base among casual exercisers. This trend aligns with SiS's stated aim to capitalise on increasing interest in activities like obstacle races and CrossFit, which provide fertile ground for sponsorship and sampling opportunities.

The integration of PhD Nutrition is expected to bolster SiS's protein offerings across key European and US markets. E-commerce channels are central to this strategy, providing a less geographically constrained route to market compared to traditional retail. The combined entity will likely present a more formidable competitive challenge, especially in the online protein supplement space, prompting other brand owners to reassess their own market penetration and digital strategies for 2019.

Separately, new findings from US-based researchers corroborate earlier observations regarding the impact of exercise on gut microbiota composition. This developing area holds significant promise for the sports nutrition sector, exploring the cause-and-effect relationships, potential for probiotic interventions, and personalised nutrition approaches. The consistent evidence that exercise positively influences beneficial gut bacteria reinforces its role within a healthy lifestyle framework. This research also suggests future opportunities for tailoring exercise regimes based on an individual's gut microbiome profile, contributing to the broader trend of personalised health services.

Further innovation in gut health includes the unveiling of a 'microbiome search engine' (MSE) by an international research team, predominantly from China. This tool aims to streamline the analysis of complex bacterial big-data, aiding academics and industry in evaluating novel bacterial strains and focusing R&D efforts. The MSE is designed to rapidly identify structurally and functionally similar microbiomes, potentially accelerating the discovery of new ingredients or synergistic combinations for dietary supplements.

What this means for United Kingdom

UK-based brand owners and manufacturers must prepare for increased competitive pressure in the sports nutrition segment following the SiS-PhD acquisition. With a combined entity focused on international e-commerce, domestic brands should solidify their unique selling propositions and review their online distribution strategies. Reformulation windows for new personalised gut health products could open by mid-2019, driven by exercise-microbiome research, requiring proactive R&D investment. Regulatory teams should monitor MHRA and FSA guidance as the personalised nutrition and microbiome sectors evolve, ensuring product claims remain compliant. Procurement leads should assess raw material availability for novel probiotic strains, anticipating potential supply chain shifts as this segment grows.

Finally, a review of market messaging is critical for brands targeting male consumers. Research conducted in Sweden and the US highlights men's scepticism towards traditional marketing and their desire for authenticity. Brands should focus on demonstrating functional benefits and supporting consumers' individual fitness journeys, rather than relying on stereotypical portrayals. This shift in marketing approach could yield stronger engagement and brand loyalty in a crowded market.

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