maconda supports Sylphar and Vendis Capital in the investment in Alpha Foods, a leading online pure-play retailer specializing in vegan powders
maconda News May 2020
The team at the Cologne-based consulting boutique maconda advised Sylphar, the Belgian specialist for OTC products, on the investment in Alpha Foods, a successful German-American e-commerce provider of vegan nutritional products and dietary supplements. Sylphar markets oral care products, cosmetic and medical skin care, as well as dietary supplements and is a portfolio company of the Belgian financial investor Vendis Capital. Prior to this, maconda’s consultants—with their extensive experience in e-commerce, dietary supplements, and niche markets—evaluated the prospects and competitive situation in the niches served by Alpha Foods through a differentiated Market Due Diligence.
The due diligence focused on analyzing the specific markets for vegan protein and superfood powders for health-conscious consumers. To accurately analyze market size and growth, relevant distribution channels, and competitive intensity, it was essential to precisely define the segments served and place them in the context of the surrounding “large” markets for sports nutrition, dietary supplements, and so-called superfoods.
The challenges included the exceptionally high dynamics of the growing niches and their constantly shifting boundaries, as well as the extraordinarily high e-commerce share driven by many start-ups for which little or no data exists. To master this challenge, maconda’s experienced consultants combined diverse qualitative and quantitative information from different sources using a proven pragmatic approach. In addition to the limited available market data, estimates and opinions were obtained from experienced VC investors, contract manufacturers, competitors, and industry associations. Valuable data was also gathered through multiple shelf audits directly at brick-and-mortar retailers, as well as from structured comparisons of offerings in online shops and on Amazon. Here, the Cologne-based analysts’ comprehensive e-commerce experience proved invaluable.
All of this fed into a comprehensive market model that interweaves the dynamics of different product groups and distribution channels. The question of who the specific target audience is and how they shop was also examined. Online-, lifestyle-, and fitness-oriented individuals—whom Alpha Foods primarily addresses—have different requirements than the traditional buyers of conventional sports nutrition and dietary supplements.
In addition to the current main market Germany, the relevant niche markets in the United Kingdom, Italy, and Spain were also evaluated, modeled, and compared. The analysis covered local market size, target audience and purchasing behavior, market dynamics, and competitive landscape, both brick-and-mortar and online. maconda colleagues from London also contributed to ensure the necessary market proximity.
About Alpha Foods
The company Alpha Foods, founded by Wolfgang Dorfner, develops, markets, and distributes a range of dietary supplements and vegan nutritional products sold through the company’s own online shop as well as through Amazon. Due to his previous work at Facebook and Google, Wolfgang Dorfner possesses profound expertise regarding such online platforms and was thus able to build a genuine and passionate online community for Alpha Foods.
maconda expands expertise in dietary supplements and sports nutrition
The maconda team has intensively addressed various topics related to dietary supplements, sports nutrition, and food products in general in recent years and has successfully completed various projects. These included multiple investment checks and Commercial Due Diligences, strategy engagements, and projects to improve operational performance. In addition, there is comprehensive experience from digital business models and e-commerce, supported by an extensive expert network.
Intensive industry experience: Dietary supplements | Protein bars | Protein powders | Phytotherapy | Granola | Granola and fruit bars | Snacks and convenience food | Dried fruits | Nuts | Tea | Natural cosmetics | Food products in general | Branded products and private label | Drugstores | Pharmacies | Health food stores | Grocery retail and discount | Teleshopping | E-commerce