Powerful Nutrition and MMG Consumer Brands Combine to Form Powerful Brands

High-protein snack maker Powerful Nutrition announced last week it has combined with consumer products investing platform MMG Consumer Brands to form Powerful Brands, a CPG holding company focused on launching and acquiring health and wellness companies.

MMG Consumer Brands, whose portfolio also includes CBD skincare line KARIBO and topical and ingestible CBD wellness brand mintedLeaf, is the consumer brands division of Miami-based investment firm MMG Equity Partners. The firm invested $5 million in Powerful Nutrition last year to support the brand’s expansion into sports nutrition and supplements.

Powerful Nutrition CEO and founder Carlos Ramirez has become CEO and operating partner of Powerful Brands as part of the merger, now operating the company’s three portfolio brands Powerful Nutrition, KARIBO and mintedLeaf. Ramirez said Powerful Nutrition and MMG Consumer Brands ultimately decided to join forces as the two companies “found synergies” within their health and wellness-focused missions.

“We decided if I’m creating a health and wellness platform from a nutrition standpoint, and you’re creating a health and wellness platform through skincare, pain relief and alternative medicine, then it makes all the sense in the world to create a common platform of health and wellness, where we’re leveraging my team and their team,” Ramirez said.

Prior to the investment from MMG, Powerful Nutrition’s previous investors include Cambridge SPG and River Hollow Partners. Ramirez said the company has bought out the majority of its stakeholders, with River Hollow Partners still owning a small minority stake.

Launched in 2013 as a high protein yogurt brand marketed to men, Powerful Nutrition, formerly Powerful Foods, has since expanded its positioning towards consumers with an active lifestyle, and diversified its offerings to include Greek yogurt drinks, oatmeal, smoothies, protein bites and plant-based shakes. The brand is available in retailers including Walmart, Stop & Shop and Wegmans. Ramirez said the brand changed its name to Powerful Nutrition this year to reflect its wider variety of product offerings.

As part of the merger, MMG Equity Partners managing partners and brothers Gabriel and Marcel Navarro have become managing partners at Powerful Brands. Gabriel Navarro previously served as CEO of the Navarro family-owned retail drug chain Navarro Discount Pharmacies, which was acquired by CVS in 2014. The family also previously owned supplement company FDC Vitamins, which Gabriel Navarro led until 2007 when the family sold a majority stake to a private equity firm, and the company was acquired by The Vitamin Shoppe in 2014. Ramirez said the brothers’ expertise and connection in the supplement space will be an asset to Powerful Nutrition as it moves into this category.

“Powerful Brands is focused on true innovation within the health and wellness category,” Gabriel Navarro said in a press release. “Our thoughtfully curated brands offer genuinely original products that appeal to mass audiences and have major staying power in their respective marketplaces.”

In addition to managing their own suite of brands, Powerful Brands will also operate as a family office, Ramirez said, focusing on high-growth health and wellness brands, with the capabilities to assist brands with product development, digital marketing and establishing a retail and ecommerce presence.

Ramirez said the company is open to growing its portfolio both through acquisitions — targeting brands with shelf-stable products within the health and wellness and beauty categories and sales that are above $1 million — as well as developing its own brands internally. However, Ramirez said the company first plans to “fine tune” and launch new products under its current brands this year before eventually growing its portfolio.

Among these new products is Powerful Nutrition’s sports nutrition line, launching this year starting with electrolyte drink mixes this spring before later expanding to whey protein powder, pre-workout mixes and dietary supplements. The new sports line also opens up more marketing opportunities for the company, as Ramirez said Powerful Nutrition has partnered with Major League Soccer team Inter Miami CF and is currently in conversations with NBA team the Miami Heat after player Tyler Herro helped the brand in formulating some of its sports nutrition products.

Pulling from experience with portfolio CBD brands KARIBO and mintedLeaf, Ramirez said Powerful Nutrition has also developed a CBD sports drink though will likely wait to launch ingestible CBD products until there is more regulation from the FDA, he said.

With Powerful Nutrition’s sports nutrition line, Ramirez said the brand aims to leverage its established consumer base and sees opportunity in offering products aimed at the fitness enthusiast who sees other athletic-focused offerings as “intimidating.” While the brand originally marketed its products towards men when it launched, a move Ramirez said was largely a “marketing stunt,” its consumer base is now 60% women.

“We’re going to keep being true to our branding and be a little bit more aggressive in our marketing, but we are gender neutral,” Ramirez said. “We’re going after men and women who are tough and powerful, not only from a physical standpoint, but mental strength too.”