Costco taps Israel's TopGum for private-label vitamin gummies
The retailer plans to bring gummy supplements to its stores, prompting TopGum to raise its revenue outlook as North American demand accelerates.
American retail giant Costco is expanding its relationship with Israeli gummy supplement manufacturer TopGum. The company announced that Costco is expected to launch its own line of vitamin gummies, known as gummiceuticals, in the fourth quarter of this year. The products will include nutritional supplements and probiotics.
According to TopGum, Costco has so far focused primarily on selling nutritional supplements through its online channels. The retailer's decision to introduce gummy supplements in its physical stores is expected to significantly expand its presence in the category.
TopGum, whose main manufacturing facility is located in Sderot, develops and manufactures gummy supplements for other companies, which market the products under their own brands. The company estimates that the expanded cooperation with Costco will boost revenue by several million dollars this year, with the majority of the contribution expected in 2027.
Alongside the announcement, TopGum raised its sales outlook. While the company said in January that its annualized revenue run rate had reached approximately $120 million in the second half of 2025, it now expects its annualized revenue run rate to exceed $145 million in the second half of 2026.
The revised forecast is based on sales generated so far this year, existing customer orders and management's expectations for the remainder of 2026.
TopGum attributed the stronger outlook to expanding business with both existing and new strategic customers across North America. The company added that its manufacturing operations in Israel, together with facilities in Canada and the United States, will enable it to meet growing demand and strengthen its supply capabilities.
TopGum is listed on the Tel Aviv Stock Exchange with a market capitalization of approximately NIS 1.6 billion (about $520 million). Over the past 12 months, its shares have risen 42%, compared with a 26% gain in the Tel Aviv SME60 Index, of which it is a constituent.
