TopGum triples capacity with $30m plant investment

24-Jan-2022

The facility will include robotics and automated systems throughout the production line

Gummy supplement manufacturer TopGum Industries has begun construction of an 11000 sqm 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.

Equipped with manufacturing technology adapted to the company’s proprietary production process, the facility will include robotics and automated systems throughout the production line.

Last year, the company launched its sugar-free vegan gummy supplement line, Gummiceuticals. The patent-pending formulation is based on a dietary prebiotic fibre formulation and uses no added sugars or any sugar alcohols, meaning it can be labelled as “sugar-free” in the US. The line is also clean-label, vegan, and gluten free, without compromising on the flavour and experience of consuming gummies, the company claims.

Innova Market Insights reports 18-25 year olds prefer gummy supplements to other formats (including functional food and beverages) while the 26-35 group prefer functional food & beverages and gummy supplements to classic supplement formats. Gummy supplements have experienced double-digit growth (CAGR 16%) from 2016 through 2020.

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 reportedly showed nearly six in 10 consumers answered that it was “better” to “avoid” sugar, and that doing so made them “feel healthier.” The survey also noted consumers are discerning with sugar substitutes, with a third avoiding artificial sweeteners.

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“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,” said Amichai Bar-Nir, CEO for 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.”

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