Nestlé has agreed to acquire the remaining shares in meal replacement and functional nutrition brand yfood, strengthening its position in the rapidly growing smart food category amid increasing consolidation across the European nutrition market.
The Swiss food giant announced on Wednesday that it will acquire the shares held by yfood's founders, giving it full ownership of the German business after initially taking a 49 per cent minority stake in 2023.
Founded in Germany, yfood has become one of Europe's leading smart food brands, offering nutritionally complete ready-to-drink meals and snacks designed for consumers seeking convenient meal solutions. The brand is available in 30 countries through more than 50,000 points of sale and generated sales of approximately €150 million (£130m) in 2025, delivering double-digit year-on-year growth.
Nestlé said the acquisition follows three years of successful collaboration and will support yfood's next phase of growth, including expansion beyond its current European footprint.
Financial terms of the deal were not disclosed. Subject to customary approvals, the transaction is expected to complete on 3 July.
The move comes as major food and dairy groups continue to invest heavily in health-focused, high-protein and functional nutrition categories, which have attracted growing consumer demand for convenient and nutritionally balanced products.
The acquisition follows a series of significant deals in the sector over the past months. This week, French dairy giant Lactalis expanded its presence in functional nutrition through the acquisition of UK-based protein shake and nutrition brand The Protein Works, reflecting growing interest in performance nutrition and meal replacement products.
Founded in Liverpool in 2012, Protein Works develops and markets a range of active nutrition products including protein shakes, meal replacements, wellness supplements and snacks. The business generates annual revenues of around €65m and operates a fully integrated model, manufacturing products at its Liverpool facility and selling primarily through its online channel.
Earlier in March, French food giant Danone has announced a definitive agreement to acquire Huel, aimed at expanding further into the fast-growing functional and complete nutrition categories. Huel has built a strong presence in the UK, Europe and the US through its ready-to-drink shakes, powders and nutrition bars, supported by both direct-to-consumer sales and retail expansion.
The market for complete nutrition products was estimated to be worth £4.45 billion in 2025, according to Future Market Insights, and projected to have a CAGR of 6.5 per cent over the next 10 years.