Brand Holdings / Dr. Emil Nutrition

Status:
Current Investment

Brand Holdings, an investor partner, and executive Jeff Hennion acquired Dr. Emil Nutrition. The company was funded entirely with equity from the three parties and is actively seeking other brands to acquire.

Thesis

The continued growth of e-commerce has changed the way consumer goods companies must operate if they are to succeed in the future. Many brands with traditional brick-and-mortar exposure have not taken advantage of the opportunities in e-commerce. Conversely, many native “Amazon brands” have not taken advantage of the opportunities in other channels, including not only brick-and-mortar retail but also other online marketplaces, international marketplaces, and most importantly, direct-to-consumer through their own websites, where they can more directly engage with the consumers of their products.

We saw an opportunity to acquire brands in both categories that could be grown by a) developing the other channels in which they were not currently strong; b) putting in place a robust and repeatable new product development / introduction process; c) building engagement with the consumer and, as a result, increasing repeat purchase rate; and d) adding sub-brands and associated products targeted to specific customer segments.  

We began working on this thesis by focusing on consumer products that are purchased on a regular basis – nutritional supplements, skincare/beauty products, and similar. We formed Brand Holdings, LLC to be the holding company under which we would acquire and operate these consumer brands. We acquired Dr. Emil Nutrition as an initial platform in the nutritional supplements space in June 2020 and plan to acquire other brands in the nutritional supplement space, as well as other consumer brands that meet our criteria, as we build our portfolio.

Company

Dr. Emil Nutrition is a nutritional supplement company based in Pittsburgh, PA with a unique “brand story” focused around Dr. Emil Hodzovic – a medical doctor, nutrition scientist and athlete (former professional bodybuilder). Dr. Emil’s goal is to foster living life to the fullest for “real people,” not just bodybuilders and marathoners. It does so through innovation in health, wellness, and sports nutrition products – products that are doctor-driven and science-backed and designed. Every product is 100% free of hormones, hype, dairy, gluten, GMOs, gimmicks and empty promises.

The company is building out its product line, most recently with the introduction of its immunity-focused products: 3-in-1 immune support capsule, elderberry plus capsule, elderberry gummy, vitamin C gummy and apple cider vinegar gummy. It is also building out its social media presence, with Dr. Emil, and its direct website, www.dremilnutrition.com

KCO Value Add

  • Researched the consumer brand, and specifically the nutritional supplement space, in order to identify the thesis and initial platform company, Dr. Emil Nutrition.
  • Negotiated and executed the purchase of Dr. Emil Nutrition and the continued involvement of Dr. Emil Hodzovic, the “face” behind the brand.
  • Identified an appropriate capital structure and investor partner, structuring the investment 100% in equity to facilitate future growth and add-on acquisitions.
  • Recruited and hired new management team consisting of a Chief Executive Officer (Jeff Hennion), VP of Product/ Operations, and VP of Marketing.
  • Worked with the team to create a detailed 100-Day Plan to guide executional priorities.
  • Implemented formal strategic planning and budgeting process.
  • Applied enhanced financial reporting and controls, including flash reports, operational dashboards, and audited financial statements.
  • Implemented a process for identifying, screening and executing add-on acquisitions that fit with the strategy and have significant growth potential by leveraging the Brand Holdings resources.