Clorox Is Out of the Vitamins & Supplements Business

The vitamins, minerals and supplements space wasn’t a healthy one for The Clorox Company after all.

The maker of Clorox bleach and Burt’s Bees personal care has pared down its “wellness” operations, having earlier this month completed the previously disclosed divestiture of the Better Health vitamins, minerals and supplements (VMS) business to an affiliate of Piping Rock Health Products, LLC.

The divested business include the Natural Vitality, NeoCell, Rainbow Light and RenewLife brands, relevant trademarks and licenses. The deal also included associated manufacturing and distribution facilities in Sunrise, FL.

The Better Health VMS business represented approximately 3% of Clorox’s fiscal year 2024 net sales. As a result of this month’s transaction, Clorox expects to incur a one-time, after-tax charge of $114 million to $134 million in the first quarter of fiscal year 2025 representing a loss on sale. 

The deal, which was initially announced in August, reflects Clorox’s commitment to continue evolving its portfolio to “reduce volatility and accelerate sales growth, as well as structurally improve its margin to drive more consistent and profitable growth over time.”

Clorox’s VMS Deals: A Look Back

In the mid 2020s, Clorox saw VMS as an opportunity to expand its reach beyond bleach, disinfectant cleaners, salad dressing and charcoal.

Clorox acquired ReNew Life Holdings Corp. in May 2016 for approximately $295 million. At the time, Renew Life was the No. 1 brand of probiotics in the natural channel, with growing share in the food, drug, and mass channel.

The deal made sense to executives, who saw ingestible wellness as an extension of other health-focused brands in the Clorox stable.

“For more than 100 years, the Clorox portfolio has been firmly rooted in health and wellness, first through the disinfecting properties of bleach, and later extending into Brita and Burt’s Bees to meet the needs of health conscious consumers,” said Benno Dorer, then CEO, back in 2016 when the deal was finalized. “The Renew Life acquisition is consistent with our strategy to accelerate growth through bolt-on acquisitions of leading brands into fast-growing categories with attractive margins. Two-thirds of the adult population in the US have experienced digestive issues in the past 12 months, and that population is likely to increase due to dietary habits. We’re looking forward to bringing the benefits of Renew Life’s digestive health products to more consumers and leveraging Clorox’s proven capabilities in brand building and distribution expansion to accelerate growth.”

In 2015, Renew Life had sales of about $115 million and had gross margins generally in line with The Clorox Company average, Clorox reported.

In 2018, Clorox purchased Nutranext LLC and its direct-to-consumer business unit (New NeoCell LLC) in a $700 million in cash deal that also included the Sunrise manufacturing and distribution site. The purchase price represented about 3.5 times Nutranext’s calendar year 2017 sales.

Nutranext’s Rainbow Light brand was at the time the No. 2 vitamin brand in the natural channel. The Natural Vitality brand was the No. 1 anti-stress and sleep brand in the natural channel; and supplements for hair, skin and nails under the Neocell brand. The company also manufactured and markets multivitamins and specialty minerals through its direct-to-consumer business called Stop Aging Now.