Nuvio Foods – the owner of the Yorgus, Vitalatte, and Kefir Reggula brands – has just added another premium dairy brand to its shelf.
The holding company acquired Moo, which produces a type of strained yogurt called skyr – originating from Iceland and not yet very common in Brazil.
The acquisition includes the Moo brand and a factory in Brodowski, in the interior of São Paulo. The transaction value has not been disclosed.
Enrico Leta, the co-CEO of Nuvio Foods, told Brazil Journal that the acquisition has been negotiated since 2021 and arose “from our demand for manufacturing capacity.”
“We have been growing at a very fast pace and our two plants – one in São Paulo and one in Rio – are already close to capacity,” he said. “We started looking for a factory that was already ready and that we could start operating immediately.”
According to him, Moo’s factory has “plenty of underutilized capacity” and Nuvio plans to move part of Yorgus yogurt production there, as the production process is identical.
“The Greek yogurt from Yorgus is also strained. The only difference in production between the two is the culture, the ferments you use.”
Skyr yogurt is also thicker than Greek yogurt, placing it in an even more premium category. While Yorgus yogurts sell for about R$8.99 each, Moo’s yogurts cost an average of R$10.50.
Founded seven years ago, Moo is the leader in Brazil in this niche, which currently only has two other competitors: Danone and Atilatte, another domestic manufacturer.
Moo is present in over 1,200 points of sale in 16 states, operating with 32 SKUs.
Meanwhile, Nuvio has a presence in 5,000 points of sale – creating an immediate opportunity to expand distribution of the new brand.
Moo’s founder, Adriana Azzolin Pinheiro, will continue at Nuvio as an executive and partner. The other partner of the company, a financial investor who preferred not to be identified, is exiting the transaction.
According to Enrico, Moo’s operations are solid, but the brand was struggling due to lack of scale.
“The gross margin of the products is very healthy, but the operating cost of a factory is very high and greatly increases its fixed costs. With the underutilized capacity they had, the company was naturally burning cash.”
Under the new management, Enrico’s goal is to increase the top line by 50% as early as next year.
The acquisition of Moo is the second in Nuvio’s history, which started with the Vitalatte brand acquired by Enrico’s brother, Patrick Urbano, in 2008. Enrico joined the company four years later to launch Yorgus.
In 2022, after receiving investments from partners at Atmos Capital and Sperss Capital – Pedro Drevon’s management firm, who was a partner at 3G Capital for 12 years – Nuvio acquired Keiff, a Kefir brand later renamed Kefir Reggula.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
