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In period that's seeing some notable strategic swerves among publicly traded players from Keurig Dr Pepper to Laird Superfood, Prenetics has undertaken big rethink after its David Beckham-aligned IM8 supplement platform moved explosively out the gate over past year. Feeling share prices fail to reflect impact of new brand that's on $100 mil run rate just a year in, Prenetics leadership is ready to undo several acquisitions, including that of Europa gym distributor, to narrow co's focus to explosively growing IM8. This morning it also announced it's ceasing all bitcoin-related activities. "This strategic move comes at a time of unprecedented success in the consumer wellness sector with IM8, the fastest-growing supplement brand in industry history, which achieved over $100 million in annualized recurring revenue in 11 months since launch," per announcement today. In view of cofounder/CEO Danny Yeung, "the most promising path to creating significant, sustainable shareholder value is to devote our undivided attention to this once-in-a-generation opportunity clearly visible in IM8." Only last month, reporting Q3, Yeung had styled IM8 and bitcoin effort as "positioning shareholders to benefit from two of the most transformative secular trends of our time." Clearly, one transformative trend will be more than enough now, given brisk takeup of IM8. For 9 mos of 2025, that DTC brand had yielded $32.7 mil in revenue, or 59% of total Prenetics topline.In interview this afternoon, Prenetics Americas prexy David Vanderveen, the former XS Energy and Nirvana Water Sciences vet, noted that Europa had been acquired during IM8 development phase as a distressed asset that might ease the way to erecting efficient 3PL platform for forthcoming DTC brand (BBI, Aug 20 2024). But IM8 already has outgrown its capabilities and David indicated that another deal might be imminent to take that discipline to next stage. The other assets being divested are not relevant to IM8: Circle DNA, a DTC genetic testing app sold in Asia, as well as 35% stake in cancer-detection co called Insighta. "We're looking to divest all 3 and simplify that story," Leung told bev watcher Drew Fallon in recent video discussion. As for bitcoin, co has ceased its activities but will maintain stash already on balance sheet, at least for now.Meanwhile, Vanderveen promised a blitz of new products with specific female and male targets as well as a deliberate test of retail channel after encouraging test at Earthbar caf&eacute; within Equinox chain, where IM8-based Ultimate smoothie became best-seller in caf&eacute;'s history. Brand's standalone sachets also have performed well there without any targeted marketing, suggesting that brand awareness is bleeding over from DTC base. RTD versions? Vanderveen demurred on that. For starters, liquid version would require formulation changes to maintain efficacy, not a trivial task. Further, co probably should first get its powdered entries on firm footing at retail before thinking about RTDs, he indicated. So nothing seems imminent on that front.As we've chronicled, IM8 launched in partnership with retired soccer icon and Inter Miami FC co-owner Beckham a year ago, recruiting Vanderveen as an advisor and promoting him to Americas prexy after brand launched. He also sits on board. David told us today that quick uptake of IM8 reminded him of his XS Energy days, when tie to Amway helped it hit $50 mil in first-year sales. With brand demonstrating broad initial appeal, this past fall it moved to more directly challenge AG1 brand (BBI, Sep 15). A few weeks ago it raised $48 mil to further fund expansion (BBI, Oct 28). Prenetics, whose US arm is based in Charlotte, is unit of parent based in Hong Kong.

STRATEGY: Riding a Hot Hand with Beckham's IM8, Prenetics Moves to Dump Distractions Like Europa Distributor, Circle DNA, Bitcoin; $100M Run Rate as Brand's First Year Draws to a Close

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