Müller UK & Ireland recently acquired Biotiful Gut Health, a leading brand in the kefir market in the UK. The acquisition, valued at around £115m ($150m), allows Müller to expand into the functional health category while maintaining Biotiful as a separate brand within its portfolio.
Biotiful has experienced significant growth, with its profit for FY2024 increasing by 646.2% to nearly £1.8m (£1,771,850) from £237,519 in 2023. Since its launch in 2012, the brand has evolved through flavor and format innovation to offer a diverse portfolio of products, including meal boosters, overnight oats, kefir for kids, and other kefir-based yogurt and beverage products.
Richard Williams, CEO of Müller Yogurt & Desserts, expressed his admiration for Biotiful Gut Health, highlighting its rapid growth, high-quality products, and focus on consumer needs and innovation. He believes that the acquisition of Biotiful will complement Müller’s existing range of health and nutrition products and enable the company to tap into new growth areas to meet evolving consumer demands.
The kefir category has been experiencing strong growth in the UK, driven by consumer demand for value-added, natural dairy products. Kantar reports that kefir has seen double-digit growth in both volume and pricing terms, with companies like Biotiful and The Collective leading innovation in this space. In the US, Circana noted a 15% increase in kefir household penetration and a 9% growth in yogurt drinks in September 2024.
The versatility of kefir and drinkable yogurt, which can be enjoyed as snacks, used in cooking, or consumed for breakfast, is a key factor contributing to their popularity. These products are particularly favored by younger consumers such as Millennials and Gen Z, as well as households with children.
Major dairy companies on both sides of the Atlantic, including Danone North America and Yeo Valley Organic to Müller, have been acquiring smaller manufacturers known for their functional dairy innovation to capitalize on the growing demand for these products. This trend mirrors the developments in the functional drinks space, where companies like PepsiCo and Coca Cola have made strategic acquisitions to enhance their offerings in the health and wellness category.
To learn more about functional dairy innovation, sign up for the FREE webinar “Pushing the Envelope of Functional Dairy Innovation,” scheduled to be broadcast on April 17, 2025. This webinar will provide insights into the latest trends and developments in the functional dairy market.
In conclusion, Müller’s acquisition of Biotiful Gut Health marks a strategic move to expand into the functional health category and capitalize on the growing demand for natural gut health products. With the kefir market experiencing significant growth in the UK and US, Müller is well-positioned to leverage Biotiful’s expertise and product portfolio to meet the evolving needs of consumers and drive further growth in the health and wellness sector.
