Biotiful Gut Health will continue to exist as a separate brand within Müller UK & Ireland’s portfolio while allowing the dairy multi-national to expand into the functional health category.
The maker of Müller Rice says awareness of the benefits of natural gut health continue to accelerate.
The acquisition – believed to be worth around £115m ($150m) according to sources cited by The Grocer – gives Müller a foothold into functional health yogurt and drinks.
Biotiful is a market leader in kefir in the UK with around 70% market share. The company’s profit for FY2024 surged 646.2% to nearly £1.8m (£1,771,850) up from £237,519 in 2023.
Since its launch in 2012, the brand has evolved through flavor and format innovation to now offer a portfolio comprising meal boosters, overnight oats, kefir for kids and other kefir-based yogurt and beverage products.
During the transition, Biotiful founder Natasha Bowes will have an advisory role while Müller Yogurts & Desserts CEO, Richard Williams, will join the leadership team.
According to Companies House documents, Bowes formally stepped down as a director and person with significant control on April 10. Müller’s Simon Paul Plant, Major Singh Rana, Matthew Paul Jones and Richard Williams are all listed as directors.
Williams commented: “Biotiful Gut Health is a business we have long admired: it is one of the fastest growing brands in the sector, has great tasting products and a real focus on consumer and innovation.
“This is a business which fits really well within our existing portfolio of brands. We are already growing and optimising our range of health and nutrition products and Biotiful Gut Health will really help us expand into new growth areas to meet changing consumer needs.
“We’re confident that our investment in Biotiful will enable the brand to further accelerate its growth potential, benefitting both consumers and our retail partners.”
Why kefir is a high-growth category
The kefir category has seen sharp growth in the UK as consumers continue to seek value-added, natural dairy products.
According to Kantar, kefir is in double-digit growth in both volume and pricing terms, with players such as Biotiful and The Collective - which was recently snapped up by Yeo Valley - among the innovators in this space.
In the US, Circana reported that kefir’s household penetration grew 15% and yogurt drinks grew 9% YoY in September 2024.
According to the market research company’s Sally Lyons Wyatt, kefir and drinkable yogurt’s versatility - the products can be enjoyed as snacks, incorporated as cooking ingredients, or as breakfast items - is a key part of their appeal.
In the US, kefir and yogurt drinks are most popular with younger shoppers such as Millennials, Gen Z, as well as households with children.
The trend hasn’t gone unnoticed by dairy majors both sides of The Atlantic - with Danone North America seeking to acquire Lifeway, Inc. in the US and British firms from Yeo Valley Organic to Müller snapping up smaller manufacturers who have built up a reputation for functional dairy innovation with consumers.
The movement mirrors what’s happening in the functional drinks space, where CPG majors PepsiCo purchased prebiotic soda brand Poppi while Coca Cola launched its own prebiotic soda brand, Simply Pop.
Want to know more about functional dairy innovation? Sign up for our FREE webinar, Pushing the Envelope of Functional Dairy Innovation, to be broadcast on April 17, 2025.