Nestlé is making two significant moves to reposition its nutrition business around bioactive proteins and nutritionally complete food products. The food giant has acquired the remaining stake in Yfood, a German smart-food brand, and entered a partnership with biotech startup Helaina to scale a precision-fermented human lactoferrin for infant nutrition.
The Yfood acquisition closes Nestlé's 49% stake purchase from 2023 by taking full ownership from founders Benjamin Kremer and Noel Bollmann. The deal is the first major acquisition under new CEO Philipp Navratil, who took the role in September 2025. Yfood has reached sales of around €150 million in 2025, representing double-digit year-on-year growth, and operates in 30 European markets with more than 150 employees.
Yfood's positioning shifts the definition of nutrition
Yfood has coined the term "smart food" to distinguish itself from diet or weight-loss positioning. A typical Yfood drink contains all 26 essential vitamins and minerals and up to 34g of protein, alongside fats, carbohydrates and dietary fibres. The brand also offers dairy and vegan options. The acquisition integrates Yfood into Nestlé's newly-formed Nutrition division alongside existing brands such as Boost Nutritional Drinks and Nestlé Vital (a line of nutrition beverage powders for adults over 40).
The move addresses demand from growing populations of GLP-1 users who seek nutritionally-rich options with vitamins, protein and other nutrients, alongside health-conscious but time-strapped consumers.
Helaina partnership targets infant formula's bioactive frontier
The partnership with Helaina focuses on scaling lactoferrin, a bioactive protein that is one of the most abundant functional proteins in human breast milk. Helaina uses precision fermentation to produce a human-identical version of lactoferrin, marketed as effera.
Historically, lactoferrin has been difficult to scale, sourced in small quantities from cow's milk and subject to supply volatility. Bovine lactoferrin prices can "change dramatically" by "hundreds of dollars a kilo," making consistency a key unlock for broader adoption. Fermentation-based production addresses this constraint.
Production scale and regulatory pathways
Helaina has already achieved lactoferrin production at metric tons today and built the capability to scale further, positioning it to potentially become one of the largest lactoferrin producers globally. The company raised $45 million in a Series B funding round in 2024 and partnered with Kroma Wellness, The Feed, Levell Nutrition, Healthgevity and Mitsubishi International Food Ingredients, Inc.
Regulatory approval remains a critical gate. Helaina has secured GRAs (Generally Recognized as Safe) status for effera in the US, while its European expansion is still in progress. Requirements vary significantly by region, particularly when it comes to clinical trials; some regions require any new infant formula to go through a clinical trial while others do not.
Bioactives as the next generation of formula evolution
Infant formula makers have been steadily layering in bioactive-enabled ingredients to more closely replicate breast milk. The category has progressed from fats like omega-3s, to human milk oligosaccharides (HMOs), and now to proteins. The partnership normalizes the use of biotechnologies in formula, which may ease consumer concerns around acceptance of such technologies.
Beyond infant nutrition, Helaina sees opportunities for effera in women's health, active nutrition, longevity, gut health along with hair and skin care.