DAVY VIEW

Glanbia’s US branded management team hosted a site visit at its flagship manufacturing facility in Aurora, Chicago. The facility is the largest of its kind in North America with ample scope to increase capacity with a modest capital outlay. The event served to remind us on the successful execution of the Optimum Nutrition (ON) brand strategy, with revenues now close to $1.2bn. Isopure, Glanbia’s second largest brand, was elevated with insights provided on its growth ambitions and market positioning. Both brands seek to address a different constituency of consumers in the dynamic and growing high-protein category. Management remain very confident on the penetration opportunity for powders across both brands. The note provides a summary of our initial thoughts.