Palm Well, led by agency co-founder Emily Keogh, targets businesses in the sector including gyms, apps, and fitness apparel brands.
The agency aims to generate one-third of its income from the new business stream by the end of 2022.
Keogh told PRWeek the decision to launch Palm Well was driven by client demand.
“We feel we’ve got a really good base of experience, and what we’ve seen over the past couple of years is an increase in inbound enquiries,” she said.
“We’ve got a lot of contacts in this industry that we can utilise and feel it is an untapped market for us.”
Palm has experience working with clients in this space, including Jonny Wilkinson’s No 1 Kombucha, vegan meat alternative brand Moving Mountains, and Bio-tiful Dairy.
The agency also believes the type of work the new division will carry out would be similar to its existing business.
“We are so excited to be launching Palm Well, at a time when consumer focus is on health and wellness more than ever before. It is a natural progression for the agency, as we have proven expertise in this sector within the food and drink category,” Keogh added.
“If this expansion goes [well], there's no reason why we might [not] consider expanding into other sectors down the line.”
Hospitality PR has been severely affected by the coronavirus pandemic and lockdowns, but Keogh anticipates that by the end of 2022, the agency will have recovered the same level of hospitality revenue it reported prior to COVID-19.