Lactalis Acquires UK Protein Brand Protein Works in Undisclosed Deal

Why It Matters

The acquisition accelerates Lactalis' entry into the fast‑growing active nutrition segment, giving it a ready‑made brand and DTC footprint to compete with other dairy and supplement giants. It also signals consolidation in a market where consumers increasingly seek high‑protein, convenient nutrition solutions.

Key Takeaways

• Lactalis adds Protein Works to expand active nutrition portfolio
• Protein Works reported £55.1 m revenue, ~ $74 m USD
• 83% of turnover comes from direct‑to‑consumer sales
• Operating profit fell 19% despite revenue growth
• Lactalis aims to leverage dairy expertise for protein innovation

Pulse Analysis

Lactalis' purchase of Protein Works reflects a broader strategic shift among traditional dairy players toward the high‑protein, active‑nutrition space. Global demand for protein‑rich snacks, powders and ready‑to‑drink beverages has surged, driven by health‑conscious consumers and the rise of home‑based fitness regimes. By acquiring a brand that already commands a strong DTC presence, Lactalis sidesteps the lengthy process of building its own consumer‑facing platform, instantly gaining access to a loyal customer base and a portfolio of innovative formulations that complement its existing dairy protein assets.

Protein Works, founded in 2012, posted £55.1 million (about $74 million) in turnover for the year ending August 2025, with an 8.5% year‑over‑year increase. While revenue grew, operating profit slipped 19% as administrative costs rose, highlighting the thin margins typical of fast‑moving consumer goods in a competitive market. The company's reliance on direct‑to‑consumer sales—accounting for 83% of its revenue—offers Lactalis a scalable channel that can be leveraged across its global distribution network, potentially improving cost efficiencies and margin performance.

The deal underscores intensifying consolidation in the nutrition sector, where legacy dairy firms are racing to diversify beyond conventional milk and cheese products. Competitors such as Danone and Nestlé have similarly expanded into plant‑based and performance nutrition, aiming to capture a share of the projected $300 billion active‑nutrition market by 2030. Lactalis' integration of Protein Works positions it to innovate faster, respond to shifting consumer expectations, and compete more effectively against specialist supplement brands, setting the stage for further M&A activity as the industry evolves.

Deal Summary

French dairy giant Lactalis announced the acquisition of UK‑based Protein Works, a maker of protein powders, shakes and bars. The terms were not disclosed, but the deal adds roughly €65 m ($75.6 m) in annual revenue and 150 staff to Lactalis, strengthening its position in the fast‑growing active nutrition market.