Queensland-based infant formula company and the producer of the world’s first 100 per cent organic plant-based infant formula, Sprout Organic, has expanded operations into Saudi Arabia and Malaysia.
Within its first three months of trading from July 2021, Sprout was ranged in over 500 retail outlets. Six months later in 2022, its store footprint doubled to over 1000.
Currently, Sprout is distributing its formulas and eight children’s product lines to over 1500 locations throughout Australia and New Zealand, including national ranging with Chemist Warehouse and Terry White Chemmart, following a national distribution deal in February last year with Australia’s largest health care group Go Vita which represents 25 per cent of health food outlets in Australia.
Founder and CEO Selasi Berdie says the company’s growth has been ‘phenomenal’.
According to Euromonitor, Saudi Arabia is the fourth largest infant formula market in the world with a market size value of US$883 million, while Malaysia ranks sixth at USD $573 million. Berdie says that with zero tariffs, high income levels and high birth rates, Saudi was a gateway to penetrate the whole GCC region and opens several other opportunities including UAE.
“Malaysia was a target for us due to its growth potential. With high birth rates and a population of over 30 million people, Malaysia has one of the highest forecast infant category growth rates at 9.34 per cent and suits our current stage of business prior to taking on larger Asian markets,” said Berdie.
Berdie says that Sprout is also actively seeking private funding to take advantage of its international expansion opportunities, and that as Sprout Organic products contains no dairy or soy, two of the nine most common allergens, it is well positioned in the market due to global rising food allergies in industrialised countries.
The company also recently announced a venture into the supplements category, partnering with national retailer Elite Supps, its first ranging deal with a supplement retailer.
Berdie says the health supplement category has changed significantly over the last decade with supplement stores previously only being frequented by bodybuilders and athletes.
“Elite Supplements have been category disruptors in the space by creating a more inclusive environment for all demographics to shop for and purchase a wide range of products. This created perfect alignment for us at Sprout, as we look to positively change the kids nutrition category,” said Berdie.
Sprout’s full product suite, including its formulas, will soon be available across 60 Elite Supplement stores Australia-wide, with a promotional focus on its Junior Protein range.
