21 Jun 2026 Nestlé’s first big move under new leadership
Nestlé has taken full control of Munich-based yfood Labs, marking the first acquisition under new CEO Marco Settembri, marking a move into a functional category to capture shifting consumer demand.…
Nestlé has bought yfood Labs, a German ready-to-drink meal company known for its functional nutrition products.
Nestlé had already acquired a 49% stake in 2023, but this latest deal gives the Swiss giant full ownership. The terms weren’t disclosed, but the acquisition is being seen as a strategic play to strengthen Nestlé’s portfolio in convenience nutrition and functional beverages.
Why yfood matters
Founded in Munich in 2017, yfood has built a reputation for meal-replacement drinks, bars and powders that appeal to busy professionals and health-conscious consumers. Its products are stocked in supermarkets across Europe and sold online, tapping into the growing demand for functional, on-the-go nutrition.
For Nestlé, this acquisition is about more than just growth — it’s about staying relevant in categories where start-ups have been stealing market share. The ready-to-drink meal space is expanding rapidly, with consumers increasingly looking for convenient, balanced options that fit modern lifestyles.
Nestlé’s move is on trend:
- Functional nutrition: Demand for products that combine convenience with health benefits is rising fast.
- Strategic acquisitions: Big brands are buying into niche players rather than building from scratch, accelerating entry into growth categories.
- Portfolio diversification: Traditional food giants are broadening beyond legacy categories to capture new consumer segments.
- European innovation: Germany and wider Europe remain hotbeds for functional food start-ups, offering partnership opportunities.
Nestlé isn’t alone in chasing functional drinks. Competitors like Danone and Unilever have also been investing in health-focused brands, while smaller players such as Huel and Soylent continue to grow their global presence.
The acquisition of yfood positions Nestlé to compete more aggressively in this space, particularly in Europe where the brand already has traction.
For drinks and food businesses, the message is clear: functional convenience is no longer niche — it’s mainstream. Whether through acquisitions, partnerships, or in-house innovation, companies that fail to adapt risk losing relevance.
Source: Bloomberg
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