Lactalis has acquired Protein Works, a UK-based active nutrition company, marking the dairy major's push into the fast-growing functional nutrition space. The move positions Lactalis alongside other food giants racing to capture share in benefit-driven nutrition, where consumer expectations have shifted from simple protein claims to holistic wellness offerings.
The protein category has matured beyond basic macronutrient positioning. Shoppers now demand products explicitly designed for specific occasions: meal replacements, pre-workout fuels, or weight management solutions. Protein Works' portfolio spans three core formats—shakes, food and snacks, and supplements—with variants tailored to GLP-1 compatibility, vegan preferences, muscle support, and energy. The company sells primarily direct-to-consumer, giving it control over customer experience and brand positioning.
Lactalis' infant, clinical and sports nutrition business has historically focused on B2B channels, with the exception of consumer brands Picot and Delical. Acquiring Protein Works breaks that pattern by bringing direct consumer access to a portfolio already built for lifestyle nutrition.
The UK company's timing reflects operational scaling pressures. Protein Works recently invested around £10 million in a vertically integrated hub near Liverpool to boost production and logistics capacity. While the company improved its cash position in its most recent year, operating and administrative costs grew faster than turnover, tightening profit margins. Joining Lactalis removes those capital constraints and grants access to international distribution.
Protein Works revenue grew from £13 million to £55 million over seven years, according to YFM, the company's equity backer. The deal reflects a 10.8x cash multiple, valuing the investment in the brand and its growth trajectory.
The acquisition fits a broader pattern. Danone acquired meal replacement brand Huel and clinical nutrition company Kate Farms in the US. Nestlé acquired Germany's Yfoods and was first to launch a GLP-1-friendly range in the US. Chobani bought Daily Harvest, a direct-to-consumer ready-meals business challenging frozen meal categories with nutritionist-formulated products.
Lactalis chairman Emmanuel Besnier said the deal "strengthens our position in the fast-growing active nutrition market" by combining dairy protein expertise with Protein Works' brand and innovation capability. Laura Keir, Protein Works CEO, framed the move as enabling the brand to "accelerate growth and reach new customers" while retaining its independent identity.