Müller UK & Ireland has acquired Biotiful Gut Health, the UK’s leading kefir brand, in a strategic push to gain ground in the growing functional health dairy segment. The deal, reported to be worth around £115 million ($150 million) by The Grocer, positions Müller to tap into the surging demand for gut-friendly, natural dairy innovations.
Biotiful, founded in 2012, currently commands a dominant 70% share of the UK kefir market. The brand has evolved beyond traditional kefir to include meal boosters, overnight oats, children’s kefir, and a range of kefir-based yogurts and drinks—underscoring its agility in flavour and format innovation.
Richard Williams, CEO of Müller Yogurt & Desserts, described Biotiful as “one of the fastest growing brands in the sector” and praised its strong consumer focus and innovation pipeline. “This acquisition fits well within our health and nutrition portfolio and will help us address evolving consumer needs,” Williams noted.
The deal also reflects Müller’s ambition to future-proof its UK business through value-added dairy. As awareness of gut health and functional nutrition gains traction, dairy players are investing in differentiated formats with clinical or perceived health benefits.
According to Kantar, kefir has experienced double-digit growth in both volume and value in the UK. In the U.S., data from Circana shows kefir household penetration rose 15% year-on-year in September 2024, while yogurt drinks grew 9%. Younger consumers—Millennials, Gen Z, and families with children—are driving much of this growth due to the products’ versatility as snacks, breakfast, or culinary ingredients.
The Biotiful acquisition mirrors wider trends in functional dairy, with competitors like Yeo Valley Organic acquiring The Collective, and Danone North America pursuing kefir producer Lifeway, Inc. These moves reflect how dairy giants on both sides of the Atlantic are repositioning portfolios to capture health-conscious, innovation-seeking consumers.
The functional dairy space’s momentum also tracks with shifts in the wider functional beverage category, where beverage giants such as PepsiCo and Coca-Cola are doubling down on prebiotic sodas with Poppi and Simply Pop.