Glanbia has taken a €31m bet that video-gamers are evolving from pizza-munching couch potatoes to energetic players with an eye on better health.
Releasing a strong set of interim results yesterday, Glanbia revealed that it has taken a 60pc stake in German start-up Levlup, with an option to buy the business outright from 2025.
The German firm, which was established in 2018, has developed energy booster drinks it says are especially tailored for video-gamers. It says they help with performance, focus and concentration. That specific market is worth about €2bn a year in Europe alone.
The company had sales of €19m last year and is on track to generate more than €30m this year.
“We’re always looking to new trends,” Glanbia chief executive Siobhán Talbot told the Irish Independent.
“There’s a cohort of e-sports competitive gamers, and for them nutrition is really important and they think of nutrition like other athletes,” she said.
“It’s a really interesting proposition for us,” she added.
Glanbia saw its business surge during the first half of the year as lockdowns and other pandemic-related restrictions eased.
Wholly-owned revenue rose 20.3pc on a constant currency basis to €2bn in the period.
Its earnings before, interest, tax and amortisation were up 108pc at just under €160m. Glanbia also launched an additional €50m share buyback.