Nestlé to sell seven vitamin and supplement brands to Yellow Wood for $1 billion

Seven brands move to Yellow Wood

Nestlé has announced the sale of seven vitamins, minerals and supplements brands to private equity firm Yellow Wood Partners for $1 billion, equivalent to €862.6 million. According to Consumidor Global, the transaction covers Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu. It also includes associated private-label supplement assets in the United States and specified manufacturing, packaging, warehousing and distribution operations.

The disposal is subject to the relevant regulatory approvals. Nestlé expects the transaction to close during the first half of 2027. Until those conditions are met, the agreement represents a planned transfer rather than a completed change of ownership.

Nestlé narrows its supplement strategy

The deal separates a broad group of established consumer supplement brands from the premium, science-based VMS business that Nestlé intends to retain. Chief executive Philipp Navratil said the company is directing resources toward areas where it has a stronger competitive advantage. He identified Solgar and Pure Encapsulations as brands that continue to perform strongly within the premium segment.

Navratil said the divested portfolio requires a different approach and specialized direction. That distinction points to two separate operating models within the supplement market: scaled mainstream brands supported by wide distribution, and higher-priced products whose positioning depends more heavily on scientific credentials, innovation and specialist channels. Yellow Wood will acquire the brands together with operating assets needed to support production and delivery, rather than purchasing trademarks alone.

Part of a wider portfolio reshaping

Consumidor Global places the transaction within a broader restructuring at the Swiss food group. The publication reported that Nestlé exited ice cream through Froneri and mineral waters including Perrier and San Pellegrino in early 2026. It also reported the dismissal of 242 employees in Spain and a 17% decline in profit. These developments provide the financial and strategic backdrop to the latest divestment, although Nestlé continues to maintain a presence in VMS through the brands it is keeping.

For the supplement industry, the transaction shifts seven recognizable brands and related US private-label capacity into the portfolio of a specialized financial owner. The inclusion of manufacturing, packaging, storage and distribution operations could give Yellow Wood more direct control over supply, inventory and customer service. It may also reduce execution risks that would arise if the buyer had acquired the brands without the infrastructure supporting them.

The competitive consequences will depend on Yellow Wood's plans after closing and on the regulatory review. Nestlé's retained portfolio will be more concentrated around premium, science-led products, while the sold business will have an owner whose mandate can be tailored to its mainstream brands and private-label activities. For producers, retailers and distributors, the immediate issues are continuity of supply and commercial terms during the transition. The longer-term question is whether specialized ownership leads to greater investment in the seven brands and sharper competition across the global supplement market.