Nestlé Divests VMS Portfolio for $1bn; Novel Food Gut Bacterium Approved in EU

Nestlé has divested its Holistic Health portfolio of mainstream vitamins, minerals, and supplements (VMS) to private equity firm Yellow Wood Partners for $1 billion. The transaction includes seven prominent brands: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride, and Sisu. Nestlé's 2025 reported sales for this portfolio stood at $1.2 billion, highlighting the significant market footprint changing hands. The deal also encompasses associated U.S. private-label supplements business and dedicated manufacturing, packaging, warehousing, and distribution operations. This strategic move allows Nestlé to sharpen its focus on premium, science-led VMS brands such as Solgar and Pure Encapsulations, a strategy endorsed by industry experts like Greg Horn as a standard playbook for optimising brand portfolios.

In parallel, the European supplement sector has seen a significant regulatory milestone with Caelus Life Sciences' freeze-dried form of the gut bacterium, Anaerobutyricum soehngenii CH106, receiving a positive EFSA safety opinion under the EU Novel Food Regulation. This approval marks the first time a live, gut-native bacterium, developed de novo as a new food ingredient, has gained such a positive scientific opinion in the EU. After a four-year application process, the Dutch developer has established a precedent, clearing the path for its microbiome-based ingredient intended for cardiometabolic health. The approval specifies a daily intake of 2.0 × 10⁹ active fluorescent units for adults, with exclusions for pregnant and breastfeeding women.

Additionally, NutraIngredients has expanded its reach into the Chinese market by launching a Chinese-language news service on WeChat, focusing on bite-sized microbiome updates. This initiative targets China, which is poised to become the largest global probiotic market. The service will cover new regulations, ingredient research, and product launches within the global microbiome nutraceutical sector. This expansion leverages the existing Probiota summit series, including upcoming events like Probiota Global in Berlin (February 2027) and the inaugural Probiota China in Shanghai (October 2027).

What this means for United Kingdom

UK manufacturers and brand owners must track the Nestlé divestment closely; these acquired brands represent substantial competitive assets for Yellow Wood Partners. Supply chain partners previously linked to Nestlé's VMS operations may face new MOQs or terms. Caelus Life Sciences' Novel Food approval for A. soehngenii CH106 provides a clear regulatory blueprint for introducing new live bacterial strains into the EU market, influencing future MHRA novel food submission strategies post-Brexit. This sets a precedent for developers eyeing the UK's high-growth gut health segment. For brands developing microbiome products, understanding the EFSA's data requirements will be critical for securing eventual UK market authorisation.

This trend is being actively addressed by UK manufacturing partners including Supplement Factory.