OVALTINE

In 1992, we entered into a long-term license with Sandoz Nutrition (currently Novartis AG) to market Ovaltine in the U.S. and took the brand from its then sales and market share of $7 million and 11%, respectively, to $46 million and 35%, and Nestlé’s share of market has decreased from 66% to approximately 49%.

 

Ovaltine’s incredible heritage and brand equity as an All-American, nutritious beverage has lasted for over 100 years. But the brand had been neglected for decades, with sales declining precipitously.

 

Ovaltine had been in a state of major decline in 1992 when we took it over. Yet, we were able to jump-start the brand by tapping into its equity and rekindling top of mind awareness. Ovaltine had a rich heritage since 1904 as a great-tasting nutritious milk flavoring. And once again, the Ovaltine name returned to the family shelf as America’s most nutritional milk flavoring.

 

On May 15, 2007, Himmel Nutrition sold its Ovaltine license to Novartis.

 

Joe Jimenez, the Chief Executive Officer of the Swiss pharmaceutical company, Novartis AG, said at the time:

 

"Himmel Nutrition Inc. has been our partner for almost 15 years and has demonstrated its skill in building small brands. They have taken Ovaltine from the inception of the license from a small, struggling brand into an important brand in its category."

 

We acquired our rights for $0 and ended up selling them for $30 million. Ovaltine in the USA is currently owned by Nestle.