Müller UK & Ireland has ramped up its portfolio extension programme with the acquisition of kefir brand Biotiful Gut Health.

While Müller has not disclosed the total cost of the acquisition, it is thought the multi-million pound deal is set to allow the business to broaden its growth into the functional health yoghurts and drinks sector.

Founded by Natasha Bowes in 2012, last year Biotiful reported a small dip in pre-tax profits to £2.4m in the year ending 31 March 2024. It achieved turnover of £35.5m.

The acquisition follows Müller’s previous acquisition of family-owned company Yew Tree Dairy late last year.

The move was aimed at bolstering the dairy firm’s production capabilities for milk powder in order to grow its export business, while boosting supply chain resilience and ensuring a positive future for the British dairy industry.

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Speaking of the deal in June 2024, Müller Milk and Ingredients chief executive Rob Hutchinson said: “Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms.

“When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.”

The UK and Ireland arm of Müller reported pre-tax losses of £65.3m in 2023, after also making a loss of £6.2m in 2022.