TopGum acquires Island Abbey to strengthen US gummy foothold

Close up of red, orange and purple gummies
TopGum will pay $20 million plus an earn-out payment based on Island Abbey’s 2025 results. The transaction is expected to close in Q1 2025. (Viktoriia Kokhanevych /Getty Images)

Israeli gummy supplement manufacturer TopGum Industries acquired Island Abbey Nutritionals, a contract developer and manufacturer specializing in gummy and lozenge supplements located in Prince Edward Island, Canada.

The strategic acquisition is expected to significantly expand TopGum’s manufacturing and technological capabilities to drive the growth of the “enjoyables” supplement segment and “deepen its foothold in the U.S. market,” according to the company.

“Island Abbey brings a unique combination of strategic customers, advanced technologies and a professional, experienced team,” said Eyal Shohat, CEO of TopGum, following the announcement. “Together with TopGum’s longstanding expertise, this partnership opens new horizons for innovation and growth. Our combined teams will continue to develop advanced solutions that deliver a wellness experience that is fun, easy and tasty.”

TopGum will pay $20 million plus an earn-out payment based on Island Abbey’s 2025 results. The transaction is expected to close in Q1 2025, pending all required regulatory and third-party business approvals.

Expanding manufacturing capabilities

Founded in 2004, Island Abbey operates a 65,000-square-foot facility equipped with advanced manufacturing technologies including starchless depositing, center-fill capabilities and automated bottling and packaging lines.

TopGum says that these added capabilities will allow it to establish an integrated supply chain with production, bottling and warehousing capabilities across two continents. The company operates a 43,000-square-foot manufacturing facility in Israel and established a subsidiary in New Jersey in 2021 to launch into the U.S. market. It is also on schedule to inaugurate a new 120,000-square-foot facility south of Tel Aviv by early Q3 2025.

As part of the latest transaction, Island Abbey will maintain its operational independence, and its 95 employees will remain under the leadership of current CEO Dean Williams, who will join TopGum’s executive leadership team.

“I’m honored to be part of this pivotal moment for Island Abbey,” Williams said. “This acquisition reflects our success in advancing supplement solutions across Canada and the U.S. The combination of these two entities is poised to redefine the gummy supplement market.”

The acquisition is expected to push TopGum’s annual revenue run-rate beyond $100 million, according to a press release.

TopGum in North America

Shohat said that since entering the U.S. market in 2021, the company has experienced strong double-digit growth. Although market insights firm SPINS reported a slight dip in gummy supplement sales since the surge in demand during the pandemic, gummies remain a preferred and growing delivery format.

Regarding how shifting trade relations between the United States and Canada might affect TopGum’s recently expanded supply chain, Shohat said that the imposition of tariffs introduces broad trade implications, making it difficult to predict the full impact on U.S.-Canada relations and the VMS market specifically.

“We accounted for these potential disruptions in our acquisition of Island Abbey and structured our agreement accordingly,” he told NutraIngredients. “While trade policies continue to evolve, the supplement industry is resilient. We have strong ambitions for Island Abbey and remain confident in achieving them.”

He added that potential Canada tariffs are not isolated, noting that the new tariffs on China and removal of the waiver on personal imports from China are factors that could reshape the category.