Applied Nutrition Inks Licensing Deal with Morrisons

Applied Nutrition plc (APN) shares are up around 1.2% on Friday morning after the company announced a three-year out-licensing agreement with Morrisons, a major UK supermarket chain.

The deal marks Applied Nutrition's first foray into out-licensing, signaling a strategic shift towards broader brand reach and product diversification.

The agreement will see Morrisons take the lead in formulating, producing, and selling Applied Nutrition-branded meals and food products.

This collaboration leverages Morrisons' expertise in food development and distribution, while capitalizing on Applied Nutrition's strong brand recognition in the sports nutrition and wellness sector.

The initial launch, slated for early January 2026, will encompass 53 products across approximately 400 Morrisons stores in the UK.

The product range will feature high-protein ready meals, food-to-go options like sandwiches and salads, and specialty breads and cheeses. Notably, the range will include GLP-1 friendly ready meals, catering to a growing segment of health-conscious consumers seeking weight management solutions.

This licensing arrangement is particularly attractive as it requires no capital expenditure from Applied Nutrition. Instead, it aligns perfectly with the company's strategic objectives of enhancing brand awareness, expanding its product portfolio, and broadening its distribution network. The agreement supports Applied Nutrition's overarching vision of becoming the world's most trusted and innovative sports nutrition, health, and wellness brand.

This move allows APN to tap into a wider consumer base without the burden of direct manufacturing and distribution costs. This could lead to improved profitability and a stronger balance sheet in the long run, factors that typically resonate well with investors.

Thomas Ryder, CEO of Applied Nutrition, stated, “We're excited to be partnering with Morrisons for our first out-licensing deal, a testament to the strength of our brand and the growing consumer demand for convenient, high-protein food choices,” reinforcing the company’s commitment to strategic partnerships and market expansion.