Dive Brief:
- Nestlé acquired the remaining 51% of ready-to-drink meals brand yfood Labs from its founders. Financial terms were not disclosed, but the Financial Post said the deal valued yfood at $523 million. The food giant acquired a 49% minority stake in yfood in 2023.
- Yfood is available in 30 countries across more than 50,000 points of sale, largely in Europe. The meal replacement product is looking to expand into other markets as part of its “next phase of growth,” according to Nestlé.
- yfood generated $174 million (EUR 150 million) in sales during 2025, a double-digit increase from the prior year.
Dive Insight:
As consumers look for convenient, portable ways to get their nutrients, ready-to-drink meals have unsurprisingly turned into a popular option.
This trend has taken on added importance, especially in the U.S., where more consumers are turning to GLP-1 medications to help them lose or maintain their weight. Even though consumers are cutting back on calories, they still need important nutrients. By adding the global reach, innovation prowess and deep pockets of Nestlé, yfood will be able to further accelerate its robust momentum.
“Through strong brand building, expanded distribution and continuous product innovation, yfood has achieved sustained growth,” Nestlé said in a statement.
Nestlé is no stranger to nutritionally rich beverages, with brands such as Boost shakes and powders and collagen-focused Vital. A larger healthy beverage portfolio with yfood will likely give the Switzerland-based company additional scale with customers and retailers, while providing it with valuable insight it could use to further innovate in the space. yfood will also help Nestlé achieve its goal of selling more nutritious products by 2030.
Nestlé’s acquisition comes just months after Danone announced a similar deal. In March, the Oikos maker spent a reported $1.2 billion for Huel, a maker of ready-to-drink meals and high-protein products.