New Funtrition Gummy Manufacturing Facility in
Florida Slated to be Fully Operational by Q1 2023
Production Facility to Support Increased U.S.
Demand of Advanced Gummy Technologies for the Global Nutraceutical
Industry
Expansion Plan Expected to Double Current
Capacity
Procaps Group (NASDAQ: PROC), a leading integrated LatAm
healthcare and pharmaceutical conglomerate, today announced a new
capacity expansion plan in the United States and Colombia for its
Funtrition business through a new gummy manufacturing facility and
increased manufacturing capabilities to meet rising U.S. and global
demand for the Company's product development and manufacturing
services of nutraceutical and specialized gummy products.
Funtrition by Procaps offers extensive expertise in the
development of a differentiated line of nutraceutical gummies with
unique formulations, flavors and textures. Its 20+ years of
experience manufacturing high quality gummies have been created on
the foundation of new oral delivery systems for vitamins, minerals
and supplements.
Funtrition’s extensive capabilities help diverse companies bring
innovative products to their markets faster, offering their
consumers an exceptional experience, high preference, and superior
adherence to different therapies. Procaps Group’s specialized
facilities for the development and manufacturing of wide-ranging
gummy technologies, both gelatin and plant-based, currently
delivers over 100+ SKUs of unique nutraceutical products to global
brands across 15 countries.
Procaps Group plans to model its new U.S. facility after its
state-of-the-art gummy manufacturing plant in Bogota, Colombia with
current total gummy facility capacity of 300 tons per month.
Development will include a three-phase project starting with
logistics, warehousing and offices scheduled to begin in Q1 2022,
and packaging operations scheduled to begin in Q2 2022. The project
is expected to be completed in Q4 2022, with full gummy
manufacturing.
Gummy supplements alone have gained the most market share
globally in relation to other non-pill formats doubling in size
over the last five years1. Gummy vitamins market is estimated to
rise at a CAGR of over 13% globally and 11% in North America
between 2021 and 20282, gaining each time more and more relevance.
The Gummy vitamins market had 657 new products launched globally in
2021, and a CAGR of 26% from 2017 to 2021, and 201 new products
launched in North America in 2021, and a CAGR of 15% from 2017 to
20213.
“This new facility is expected to substantially increase our
capacity for the first time outside of Procaps Group’s Colombian
headquarters for the manufacture of animal and plant-based
nutraceutical gummies,” said Camilo Camacho, Procaps Group
President. “The U.S. location will ensure redundancy in supply to
the market, and position manufacturing of a wider product array
closer to key current and potential new customers. The higher
production capacities are expected to also be a significant
addition to our global growth plans.”
“Complementing our recent West Palm Beach, Florida acquisition,
the expansion of our U.S. capacity for our Funtrition business is
an important step towards our commitment to meet the requirements
of our growing base of U.S. customers,” said Ruben Minski, Procaps
Group CEO. “Our new Inspiration Center is a critical piece in our
value proposition, underscoring our commitment to deliver better
health and nutrition to the world through innovative oral delivery
systems. Taken together, we believe these long-term investments
will further position Funtrition as a leader in extraordinary and
enjoyable gummy products and position us to capture emerging growth
opportunities within the space.
“This project is part of a larger plan to strengthen our global
capabilities. Our capex plan also includes important automation and
efficiency initiatives in our Bogota and Barranquilla
pharmaceutical facilities, increases in capacity across our
different locations, and the strengthening of our R&D
operations,” concluded Minski.
About Procaps Group
Procaps Group, S.A. (“Procaps Group”) (NASDAQ: PROC) is a
developer of pharmaceutical and nutraceutical solutions, medicines,
and hospital supplies that reach more than 50 countries in all five
continents. Procaps has a direct presence in 13 countries in Latin
America and more than 4,500 collaborators working under a
sustainable model. Procaps develops, manufactures, and markets
over-the-counter (OTC) pharmaceutical products and prescription
pharmaceutical drugs (Rx), nutritional supplements and high-potency
clinical solutions. For more information, visit
www.procapsgroup.com or Procaps Group’s investor relations website
investor.procapsgroup.com.
About Funtrition™
Funtrition™, Part of Procaps Group, is a leading provider of
Contract Manufacturing and Product Development services in advanced
gummy technologies for the global nutraceutical industry. Through
our extensive capabilities and expertise in product development and
gummy manufacturing, we help different companies bring innovative
supplement products to their markets faster, offering their
consumers an exceptional experience, high preference and superior
adherence to different therapies and nutrition concerns. Our
advanced technological gummy platforms, including gelatin and
non-gelatin gummies such as agar and pectin, center-filled gummies
and mixed gummy matrix, plus our proven formulation, manufacturing
and regulatory expertise, has enabled us to offer end-to-end
solutions and what we believe to be best-in-class support across
both development and delivery of nutraceutical products. Our gummy
facility is NSF, HACCP, GMP, organic and Halal certified, as well
as Health Canada certified manufacturers.
To learn more about Funtrition visit www.funtrition.com
Forward-Looking Statements
This press release contains “forward-looking statements.”
Forward looking statements may be identified by the use of words
such as “forecast,” “intend,” “seek,” “target,” “anticipate,”
“believe,” “expect,” “estimate,” “plan,” “outlook,” and “project”
and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
Such forward-looking statements include estimated production
capacity of the new US facility; expectations related to the timing
and completion of our capacity expansion plans; expectations
regarding Procaps Group’s capital expansion and global growth
plans; and expectations related to product development
capabilities. Such forward-looking statements with respect to
revenues, earnings, performance, strategies, synergies, prospects,
and other aspects of the businesses of Procaps Group are based on
current expectations that are subject to risks and uncertainties. A
number of factors could cause actual results or outcomes to differ
materially from those indicated by such forward-looking statements.
These statements involve risks, uncertainties and other factors
that may cause actual results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by these forward-looking statements. Although
we believe that we have a reasonable basis for each forward-looking
statement contained in this press release, we caution you that
these statements are based on a combination of facts and factors
currently known by us and our projections of the future, about
which we cannot be certain. We cannot assure you that the
forward-looking statements in this press release will prove to be
accurate. These forward-looking statements are subject to a number
of significant risks and uncertainties that could cause actual
results to differ materially from expected results, including,
among others, the ability to recognize the anticipated benefits of
the acquisition of the new US facility, the impact of COVID-19 on
Procaps Group’s business, costs related to the acquisition and
integration of the new US facility, changes in applicable laws or
regulations, the possibility that Procaps Group may be adversely
affected by other economic, business, and/or competitive factors,
and other risks and uncertainties, including those included under
the header “Risk Factors” in the Form F-1 Registration Statement
filed with the U.S. Securities and Exchange Commission (“SEC”), as
well as Procaps Group’s other filings with the SEC. Should one or
more of these risks or uncertainties materialize, or should any of
our assumptions prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. Accordingly, you should not put undue
reliance on these statements.
1
https://www.newhope.com/market-data-and-analysis/analysts-take-gummy-supplement-sales-double-2014-2018.
2 Grand View Research. Gummy Market Analysis, 2021. 3 Mintel GNPD.
Chew/Gummy Format type where Sub-Category matches Vitamins &
Dietary Supplements and Date Published is within the last five
complete years.
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version on businesswire.com: https://www.businesswire.com/news/home/20220202005204/en/
Investor Contact: Chris Tyson Executive Vice President MZ
North America Direct: 949-491-8235 PROC@mzgroup.us
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