Nichols is expanding its position in the health and wellness drinks market with the €75m acquisition of VITHIT, in a deal that highlights the growing importance of functional soft drinks and gives the brand access to a much larger commercial and international platform.

Nichols has acquired 100% of VITHIT Limited and its subsidiaries for €75m, approximately £64m, as the soft drinks group looks to strengthen its position in the growing health and wellness segment and diversify its portfolio.

The acquisition gives Nichols a market-leading functional drinks brand with established positions in the UK and Ireland, alongside operations across a further 13 international markets.

For the wider soft drinks sector, the deal reflects the increasing importance of products positioned around specific functional benefits, as consumers look beyond conventional refreshment towards beverages that combine convenience with health and wellness credentials.

Founded in Dublin in 2001, VITHIT produces low-calorie, low-sugar beverages fortified with vitamins and functional ingredients. Its portfolio spans bottled ready-to-drink beverages, sparkling cans and effervescent products, with its products providing 100% of the Recommended Daily Allowance of eight essential vitamins.

The brand has already established a significant position in the UK and Irish markets, with customers spanning grocery, convenience, foodservice and specialist retail.

Its performance has also demonstrated the growth opportunity Nichols sees in the category. VITHIT generated revenue of €26.5m in the year ended 31 December 2025, representing a three-year compound annual growth rate of approximately 9.5% and sales growth of more than 90% since 2021.

Adjusted operating profit was €4.2m, with adjusted profit before tax of €4.1m.

Nichols says the acquisition is immediately earnings enhancing and forms part of its strategy to selectively invest in differentiated soft drinks brands capable of strengthening its UK packaged business while providing exposure to attractive growth categories.

For VITHIT, the acquisition provides access to Nichols’ existing distribution capabilities, customer relationships, brand-building expertise and international infrastructure.

Nichols has identified significant scope to increase VITHIT’s distribution across its existing customer base, particularly in the UK, while also increasing brand investment and accelerating international growth.

That gives the acquisition a second strategic dimension. Rather than simply adding another drinks brand to its portfolio, Nichols believes it can use its existing commercial infrastructure to increase the penetration of a product that already has established consumer and retailer relationships.

The deal also illustrates the appeal of asset-light operating models in the soft drinks sector. Nichols says VITHIT’s operating model is highly complementary to its own and expects synergies of more than €1m a year, supported by procurement and operational efficiencies and the use of existing Group infrastructure.

Nichols will retain VITHIT’s Dublin office and will be supported by the existing management team through a transition period.

The company has funded the acquisition from cash on its balance sheet. Following completion, Nichols says it remains net cash positive as of 30 June 2026, with a new revolving credit facility from NatWest available for working capital purposes.

For the food and drink industry, the acquisition highlights how the boundaries of the soft drinks category continue to shift.

Functional beverages have moved beyond specialist nutrition into mainstream retail, with products increasingly combining low or reduced sugar with vitamins and other functional ingredients. For manufacturers and brand owners, this creates opportunities to compete on added functionality and specific consumer needs rather than relying solely on traditional taste, price and refreshment propositions.

VITHIT’s portfolio also demonstrates the importance of offering functional products across different formats and consumption occasions. Its combination of ready-to-drink beverages, sparkling cans and effervescent products gives the brand multiple routes into the consumer’s daily routine.

Nichols’ decision to acquire the brand suggests that established drinks businesses see further growth potential in this convergence of soft drinks and wellness.

Andrew Milne, chief executive officer of Nichols, said VITHIT had an established market position, a differentiated consumer proposition and “significant headroom for growth”.

He said Nichols was particularly well placed to accelerate the brand through its commercial capabilities, customer relationships, route-to-market expertise and international infrastructure.

For VITHIT founder Gary Lavin, the transaction marks the next stage in the development of a brand launched more than 25 years ago with the ambition of creating a distinctive health and wellness drinks proposition with broad consumer appeal.

The challenge for Nichols will now be to convert VITHIT’s existing momentum into further distribution, while maintaining the brand proposition and consumer loyalty that have underpinned its growth.

The acquisition nevertheless sends a clear signal about the direction of the soft drinks market. Functional nutrition is established and beverage companies are increasingly looking to health and wellness brands as a route to growth, diversification and access to new consumer occasions.

For Nichols, the £64m deal provides both an established platform in functional drinks and the opportunity to use its existing infrastructure to take that platform considerably further.