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Birmingham Post
Birmingham Post
Business
Jon Robinson

THG boss Matthew Moulding brands UK a 'selling club' as he addresses Myprotein's future

The boss of THG has described the UK as a "selling club" where founders are "pressured to sell brands as soon as they show promise".

Matthew Moulding, who is the CEO of the Manchester-headquartered software and online retail giant, said the UK provides "the talent that is always bought by the bigger clubs".

In a social media post, the businessman also addressed recent interest in the group's Myprotein brand which was acquired in 2011.

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He said: "It’s no surprise to anyone at THG that Myprotein has finally come into focus in the City and the media.

"It's always been a bemusement to us. THG has three exciting divisions, each global leaders.

"But to date, interest in THG has been limited to THG Beauty, our largest division, and THG Ingenuity as an exciting tech platform. Myprotein is often ignored, despite being a huge global brand."

Mr Moulding added that since the brand was acquired, Myprotein's sales have risen from £20m to almost £700m.

He also said Myprotein has become one of the largest brands crated in Britain in the last 20 years, alongside Boohoo, PrettyLittleThing, Gymshark and Fevertree.

The CEO added: "We are only just getting started with Myprotein. The UK is a place where founders are pressured to sell brands as soon as they show promise.

"It's to be expected. In footballing terms, the UK is akin to a 'selling club', providing the talent that is always bought by the 'bigger clubs'.

"The UK is a relatively small island, and so it's difficult expanding into international markets.

"It can't be done solely from the UK, and so it takes investment, infrastructure, risk and incredible energy.

"Through mega mergers, the consumer giants have built a global retail platform over the decades.

"They can buy small brands that are successful in just one market, and quickly globalise them though their extensive customer network."

Mr Moulding's comments come after activist investor Kelso Group increased its stake in THG and called for it to consider separating out Myprotein.

In a statement, Kelso said: "THG’s nutritional business is likely ultimately to end up being owned by one of the large global food and beverage companies all of which have already begun investing in nutritional, wellness and healthier assets to improve the mix of their sales between nutrition and chocolate or sugar products."

The group suggested potential buyers could include Nestlé, Coca-Cola, PepsiCo and the Cadbury’s owner, Mondelēz International.

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