TopGum triples capacity with US$30m investment in new plant

Gummy supplement manufacturer TopGum Industries has begun construction of a new, US$30m, 11,000m2 plant 1.5 hours south of Tel Aviv. The facility, joining the company’s existing production plant, is expected to be fully operated in mid-2023 and triple the TopGum’s production capacity.

Fully equipped with high-precision manufacturing technology adapted to TopGum’s propriety production process, the new facility will include robotics and automated systems throughout the production line, with cutting-edge technology and meets FDA and TGA regulations.

“The deployment of such state-of-the-art systems will not only triple our production capacity, but also will raise the quality of the gummy supplements a level higher,” stated Amichai Bar-Nir, CEO of TopGum. “We will continue to channel investment in manufacturing and packaging infrastructure together with automation systems to constantly improve production efficiency and technological superiority. This new facility will allow us to meet the demand of our international customers, and to provide the highest quality of supplement gummies. We are recruiting the best minds from the international food–tech industry to support the existing innovative R&D projects and managerial roles in our fast expended company.”

Last year, TopGum launched its sugar-free vegan gummy supplement line of Gummiceuticals. The patent-pending formulation is based on a dietary prebiotic fibre formulation and uses no added sugars or any sugar alcohols. It can be labeled as sugar free in the US. The Gummiceuticalsline is also clean-label, vegan, and gluten free, without compromising on the sweet flavour and enjoyable experience of consuming gummies.

Innova Market Insights reports that group 18-25 age prefers gummy supplements over all other supplements format (including functional food and beverages) while 26-35 group prefer functional food and beverages and gummy supplements to classic supplement formats. Over the first eight months of 2021, one quarter of vitamin and mineral launches were gummies. Gummy supplements have experienced double-digit growth (CAGR 16%) from 2016 through 2020. Vcaps (vegetarian caps) were 21% of launches (2021 YTD), up 5% in launch count CAGR.

Sugar reduction has been identified by multiple research and professional organisations as a primary health trend for consumers. A health and nutrition survey conducted last year by Euromonitor revealed that, when asked about sugar, nearly six in 10 consumers answered that it was “better” to “avoid it,” and that doing so made them “feel healthier.” The survey further noted that consumers are choosy about sugar substitutes, with about a third avoiding artificial sweeteners. A Datassential survey revealed that “No sugar added” was a hot trending term for consumers today, as is the term “functional benefits.”

“The Gummiceuticals line answers the need of many consumers who want to enjoy their supplements, but without pills or sugar-laced gummy formats,” noted Hagai Stadler, chairman of the board of TopGum. “TopGum will continue to invest in breakthrough technology to take gummy supplements to the edge of technology, and to introduce innovative functionalities to gummies that will present new opportunities and serve new markets.”