Nestlé is taking full ownership of German meal-replacement company Yfood, marking the first acquisition under Chief Executive Officer Philipp Navratil as the food giant sharpens its focus on health and nutrition.

The deal comes as major food companies race to capture growing demand for convenient, protein-rich products that fit into increasingly busy lifestyles.

Consumers are spending more on products that offer both nutrition and convenience, creating opportunities for brands specializing in ready-to-drink meals and functional foods.

Nestlé, which acquired a 49 percent stake in Munich-based Yfood in 2023, is buying out founders Noel Bollmann and Benjamin Kremer, according to people familiar with the matter.

The terms were not disclosed, but the transaction values Yfood at about €450 million ($523 million).

For Nestlé, the acquisition is another step toward expanding beyond traditional packaged foods and strengthening its position in higher-growth nutrition categories.

It also signals confidence in a business that has built a loyal customer base across Europe in less than a decade.

From startup idea to European brand

Yfood was founded in 2017 after Bollmann and Kremer identified a gap in the market while working in finance.

Long hours at the office often left few healthy meal options, inspiring the pair to develop products that could serve as convenient meal alternatives.

What started with ready-to-drink meals has grown into a broader product range that includes shakes, powders, bars and bowls.

Known for its distinctive “This Is Food” branding, Yfood now sells products in about 30 European countries and is expected to generate nearly $174 million in revenue this year.

Nestlé builds its nutrition business

The acquisition reflects Nestlé’s broader effort to strengthen its presence in nutrition and wellness.

Navratil, who became CEO in September, has emphasized investing in categories with strong consumer demand and long-term growth potential.

Yfood could also help Nestlé expand further in the United States, one of the world’s largest markets for meal-replacement and performance nutrition products.

The category has evolved beyond traditional diet shakes, attracting consumers looking for convenient ways to support healthier lifestyles.

Competition intensifies in health and wellness

Nestlé has steadily expanded its nutrition portfolio in recent years. In 2022, it acquired a majority stake in Orgain, a leading U.S. maker of plant-based protein shakes, while continuing to grow brands such as Boost.

Rivals are pursuing similar strategies. Earlier this year, Danone acquired UK-based Huel, broadening its offering of protein-rich products.

Nestlé has also combined its Health Science and Nutrition businesses into a larger platform focused on areas including infant nutrition, gut health and obesity care.

The Yfood deal is expected to close on July 3, with Nestlé executive Jolanda Schwirtz set to lead the company.