TopGum Industries, an Israeli manufacturer of gummy-based dietary supplements and candies announced on Sunday that it has inked a five-year agreement to develop nutritional supplements for a large multinational company.
TopGum described the unnamed entity as a “large international corporate worth of over $150 billion that produces and markets its products in about 200 countries all over the world.” As part of the agreement, the Sderot-based manufacturer will develop gummy-based nutritional supplements for the international firm that are expected to be marketed and sold across Europe. TopGum’s Tel Aviv-traded shares jumped more than 20% in intraday trading on Sunday.
During the first two years of the contract, the two parties committed to an exclusivity period. TopGum said it expected to get first orders starting in the second quarter of the year 2023.
“The agreement we worked on over the past year is an anchor of our accelerated growth plan, and for the benefit of its realization a new plant is also being established that is designed to triple the company’s production,” said TopGum’s CEO Amichai Bar-Nir. “We are proud to add this agreement to a series of other strategic agreements we have signed with leading international companies.”
“These agreements are a leap forward for the company, to build the infrastructure for increasing the company’s production and sales volumes at the current plant and for the new plant, which is expected to start production in the second half of 2023,” Bar-Nir added.
In January this year, TopGum announced the construction start of a new, $30 million, 11,000-square-meter plant to help the manufacturer triple its production capacity. The new facility will include robotics and automated systems. TopGum says its current facility can produce one million gummiceuticals, or 2.5 tons, per hour.
Founded in 2004, TopGum is engaged in the development, production, and marketing of gummy candies and nutritional supplements based on dietary fibers and natural ingredients.
TopGum is controlled by founder & president, Hai Hayoun, Roi Lusternik, and the AP Partners fund — a partnership created by private equity AP Partners, Murray Arkin and Discount Capital. The company started trading on the Tel Aviv Stock Exchange in 2021, raising a total of NIS 100 million ($30 million) from the public, based on a company valuation of NIS 442 million, according to a filing to the Tel Aviv Stock Exchange.
Last year, TopGum launched its sugar-free vegan gummy supplement line in addition to its gummy-based line of supplements containing botanical extracts, vitamins and minerals at concentrated dosages.