Key takeaways
- Founded in 2017, Germany’s Yfood has gone from strength to strength with its portfolio of meal drinks, powders and bars
- Nestlé bought a 49% stake in Yfood in 2023, and will now take full ownership of the brand
- Nutrient-packed food is a hot space: recent deals include Danone’s acquisition of Huel and Lactalis’s acquisition of Protein Works
Nestlé has bought the remaining shares in Yfood from its founders and chief executives, Benjamin Kremer and Noel Bollmann, for an undisclosed sum.
The addition of Yfood will be a boost for Nestlé’s newly-formed Nutrition division: slotting in alongside similar brands such as Boost Nutritional Drinks and Nestlé Vital (a line of nutrition beverage powders for adults over 40).
Yfood, however, sets itself apart by backing away from diet, weight loss, protein or meal replacement positioning.
Instead, it’s coined the term ‘smart food’ to reflect its portfolio of products with complete nutritional profiles.
Nestlé has already collaborated with the brand for the past three years: helping it reach sales of around €150 million in 2025 (representing double-digit year-on-year growth).
The next step will be to take Yfood outside its European stronghold: with international expansion on the cards for the next phase of growth.
Complete nutrition
A typical Yfood drink contains all 26 essential vitamins and minerals and up to 34g of protein, alongside fats, carbohydrates and dietary fibres. Yfood also claims superior satiety, a low glycaemic index to avoid spikes and peaks in blood sugar, and comes in both dairy and vegan options.
Based in Munich, Yfood has now expanded to 30 European markets with more than 150 employees.
Between food and supplements
For Nestlé, the deal represents the first acquisition since Philipp Navratil took on the role as CEO in September.
Yfood joins a company that’s been restructured into four key areas (coffee, petcare, snacks and nutrition) with a focus on becoming ‘simpler, faster, more competitive and more innovative’.
That’s also meant an immediate focus on cutting brands: but Yfood represents the first move back towards building up a portfolio with future-looking growth opportunities.
The nutrition division incorporates Nestlé Health Science: the company’s future-facing body that bridges the gap between the worlds of food, supplements and pharmaceuticals.
Nestlé Health Science has explored everything from infant formula (recently hit by scandal) to peanut allergy treatments (sold in 2023).
There’s also vitamins and supplements (Nestlé is considering selling its mainstream and value vitamin brands, such as Nature’s Bounty, Osteo Bi-Flex and Puritan’s Price).
The acquisition of Yfood signals Nestlé is returning its focus to its strongest footing: food.
But this time it’s food with a nutritional punch. There’s a need to keep up with the evolving needs of the increasing number of GLP-1 consumers, who are looking for nutritionally-rich options with vitamins, protein and other nutrients.
And there remains the original demographic of health conscious but time-strapped consumers.
