Schwabe Group acquires majority stake in Braineffect

The Schwabe Group strengthens its digital business and acquires a majority stake in Braineffect. The brand for dietary supplements remains under the leadership of founder Fabian Foelsch

Karlsruhe, March 17, 2024 - The Schwabe Group, provider of natural health solutions, is acquiring a majority stake in the startup Braineffect and plans to take over the company completely in the medium term. The Berlin-based specialist for dietary supplements and functional foods will remain under the leadership of its founder Fabian Foelsch, who will continue to act as Managing Director.

With this acquisition, the Schwabe Group is focusing on digital brands, new target groups and an expanded direct-to-consumer strategy in order to position itself for the future.

Digital brand strategy and market potential

Braineffect was founded in 2016 and has established itself as a pioneer in the field of mind nutrition. The brand is aimed at a young, health-conscious target group that actively invests in its well-being. With products such as FOCUS, SLEEP and DAILY GUT, the company has built up a strong market position in Germany, Austria, Switzerland and France.

With Braineffect, we are bringing a brand with enormous innovative strength into our company. This partnership demonstrates our ambition to grow beyond the traditional healthcare market and appeal to new customers.

Olaf Schwabe, CEO of the Schwabe Group

The company sells its products through 2,500 retail locations (dm, Budni) and primarily via digital channels, supported by a strong social media presence and influencer marketing. Over 1,000,000 products were already sold in 2024.

The Schwabe Group had already joined as an investor in 2020 and now holds a two-thirds majority stake. This acquisition is part of a long-term strategy to invest in digital health brands and promote innovative business models.

Future plans: growth and expansion

Braineffect will continue to operate independently, with a clear focus on product innovation and international expansion. Founder and CEO Fabian Foelsch sees great opportunities in the collaboration: "With the Schwabe Group as a partner, we can accelerate our growth and take our mission of helping people to live healthier lives to a new level."

The Schwabe Group is increasingly focusing on strategic investments and participates in innovative start-ups via its venture arm Natural X. The acquisition of Braineffect serves as a blueprint for future investments in the digital health sector.

With this acquisition, the Schwabe Group is combining its traditional strengths in research, quality and herbal medicine with Braineffect's digital DNA and market dynamics. From a start-up perspective, it is exciting to see that the south-west of Germany is clearly gaining in importance within the start-up economy. Karlsruhe in particular is increasingly in the spotlight alongside Stuttgart and Heidelberg. The spirit of optimism is almost palpable and you can feel how the medium-sized companies and the large corporate tankers are on the move.