Nestlé SA, one of the world’s largest food and beverage companies, has taken a big swig of Yfood, a German meal replacement startup, in a deal that values the startup at approximately $469 million.
The deal will allow Nestlé to expand its health and wellness initiatives by adding Yfood to its portfolio of products. Yfood, which was founded in 2018, offers a variety of meal replacement products, such as shakes, porridges, and bars, that are designed to provide complete nutrition with all the micronutrients needed for a healthy lifestyle.
The startup’s products are already being sold in more than 10,000 retail stores in Germany, Austria, and Switzerland, as well as via its own ecommerce platform. It also sells its products directly to corporate partners, including gyms and universities.
Nestlé’s acquisition of Yfood is just the latest move in the company’s efforts to build a healthier portfolio of products and services. In 2020, Nestlé acquired Freshly, a food delivery service that offers pre-made meals. In 2019, the company acquired rights to the Ready-to-Drink nutritional shake business of Almased, a popular dietary supplement company based in Germany.
With the Yfood acquisition, Nestlé has solidified its presence in the burgeoning meal replacement market. Yfood’s success has come from cleverly positioning itself as a convenient, nutritious, and economical meal alternative for health-conscious consumers, particularly those with busy lifestyles.
By leveraging Yfood’s existing distribution channels and customer base, Nestlé looks set to grow its health and wellness business as well as capture a large portion of the meal replacement market. With the added scale, the company stands to benefit not only from additional revenue streams but also in terms of additional market share.
The acquisition of Yfood is a major milestone for Nestlé, as it moves the company further away from its traditional processed food products and deeper into the health and wellness space. It will be interesting to see the impact Nestlé’s purchase of Yfood has on the meal replacement market, and how the company leverages its new asset to capitalize on the growing trend of health-conscious consumers.