Nearly a year ago in late December 2014, FoodState Inc., which makes all-natural vitamins and supplements under the MegaFood brand, was acquired by Pharmavite LLC, a subsidiary of publicly traded Japan-based Otsuka Pharmaceutical Co. Ltd. The transaction was but one of many in the active deal landscape involving makers of natural and organic food products. As Pharmavite continues to digest its buy of the fast-growing MegaFood brand, the company’s CEO Robert Craven discusses the potential for acquisitions. Craven reveals that when the company is ready to make buys, it will likely eye makers of whole foods that would provide the delivery system for vitamins and supplements. He added that he expects that deal activity in the vitamin and supplements space overall will continue at a robust pace along with high valuations. But while there are plenty of opportunities for the growth in the segment, government regulation and oversight of the nutritional supplements category has grown more stringent in recent years, creating higher barriers to entry as well as adding more risk.
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