Müller Acquires UK’s Leading Kefir Brand Biotiful to Expand into Functional Dairy Market

Müller has acquired the UK’s best-selling kefir brand in a strategic move to enter the functional dairy space, according to DairyReporter.

A High-Value Acquisition

Biotiful Gut Health will remain a standalone brand within the Müller UK & Ireland portfolio, enabling the multinational dairy group to expand its footprint in the fast-growing functional health category.

The producer of Müller Rice highlighted that consumer awareness of natural gut health benefits continues to accelerate.

The acquisition—estimated to be worth around £115 million ($150 million) according to The Grocer—provides Müller with a significant entry point into the functional yogurt and drinks segment.

Biotiful currently holds a market-leading 70% share of the UK kefir category. Its profits surged by 646.2% in FY2024 to nearly £1.8 million (£1,771,850), up from £237,519 in 2023.

Since its launch in 2012, the brand has grown through flavor and format innovation. Its portfolio now includes protein boosters, overnight oats, children’s kefir, and a variety of yogurt-based and kefir-based drinks.

Strong Strategic Fit

Richard Williams, CEO of Müller Yogurt & Dessert, commented:

“Biotiful Gut Health is a business we’ve admired for a long time: it's one of the fastest-growing brands in the sector, with great-tasting products and a strong focus on the consumer and innovation. This business fits incredibly well into our existing brand portfolio. We're already growing and optimizing our health and nutrition range, and Biotiful Gut Health will help us expand into new growth areas to meet changing consumer needs.”

“We’re confident our investment in Biotiful will further accelerate the brand’s growth potential, benefiting both consumers and our retail partners.”

Why Kefir is a High-Growth Category

The kefir category has seen strong growth in the UK as consumers increasingly seek natural dairy products with added health value.

According to Kantar, kefir is experiencing double-digit growth in both volume and value, with players like Biotiful and The Collective—recently acquired by Yeo Valley—leading innovation in the space.

In the US, Circana reported that household penetration of kefir increased by 15%, while yogurt drink sales rose by 9% year-on-year as of September 2024.

Sally Lyons Wyatt from the research firm noted that the versatility of kefir and drinkable yogurt—enjoyed as snacks, used in cooking, or consumed at breakfast—is a key part of their appeal.

In the US, kefir and yogurt drinks are particularly popular among younger consumers—Millennials, Gen Z, and households with children.

The trend has not gone unnoticed on either side of the Atlantic. Danone North America is reportedly eyeing a deal to acquire Lifeway, Inc., while UK companies such as Yeo Valley Organic and Müller are acquiring smaller producers that have built reputations for functional dairy innovation.