High Protein, high Investment
Health and wellness are increasingly becoming a key driving factor in consumers’ choices. This is especially true when it comes to food, and that trend is being supercharged by the increasing use of GLP-1 drugs such as Ozempic and Wegovy, which means that many consumers are eating less but still striving to meet their protein, fibre and micronutrient needs. Even when not on prescribed weight-loss drugs, many consumers have demonstrated that they want to put more effort into maintaining a healthy diet to support their general wellbeing and fitness.
As a result, Australian food retailers are devoting more shelf space to ‘healthy’ options, namely high protein and ‘better for you’ (BFY) foods, with the Australian press reporting on the ‘proteinification of the supermarket’. Overseas, North American grocers expect over 10% growth in space allocation for high-protein products in the next few years, and investors have started to take notice of this trend, with an uptake of activity in this space in Australia, Europe and North America.
The following tables set out some major high protein and BFY food transactions in North America, Australia and Europe in recent years:
North America
|
Transaction
|
Product
|
|
L Catterton’s acquisition of Good Culture in January 2026 |
Protein-rich, clean-label cultured dairy products including cottage cheese, sour cream and cream cheese |
|
Monogram Capital Partners’ sale (in 2023) of a majority stake in, and then repurchase (in 2025) from AUA Private Equity of, Western Smokehouse Partners |
High-protein, low-sugar and clean-ingredient meat sticks |
|
Platinum Equity’s acquisition of Horizon Organic and Wallaby in April 2024 |
The world’s largest USDA-certified organic dairy brand and an Australian Greek-style yoghurt |
|
Guardian Capital Partners’ acquisition of Nugredient Solutions in April 2026 Puratos’ acquisition of Vor Foods in January 2026 |
Nut-based ingredient solutions such as sliced and roasted nuts, nut butters and nut flours |
Australia
|
Transaction
|
Product
|
|
Danone’s acquisition of MADE Group in June 2026 |
Nutrient rich drinks, gut-health yoghurts and other BFY foods |
|
Roc Partners’ acquisition of Pace Farm in September 2023 and acquisition of VOAG in June 2026 KKR’s acquisition of ProTen in July 2025 |
Poultry/eggs |
|
Quadrant Private Equity backed My Muscle Chef’s acquisition of Chefgood in May 2025 |
Low calorie, ready-to-eat microwavable meals |
|
New Forests’ acquisition of a portfolio of macadamia orchards in Bundaberg in March 2026, renaming the area ‘Bunya Orchards’ Canadian PSP Investments’ acquisition of the assets of Macadamias Australia in February 2023. This followed its takeover of Australian walnut and almond grower Webster in 2019 Nuveen Natural Capital’s acquisition of Macadamia Enterprises in December 2022 |
Nuts, most notably Australian Macadamias |
Europe
|
Transaction
|
Product
|
|
Danone’s acquisition of Huel in March 2026 |
Plant-based drinks and meals, as well as a broad range of powders, ready-to-drink shakes and nutrition bars |
|
Cinven’s acquisition of a majority stake in Vitamin Well in August 2024 and several bolt-on acquisitions since, including EMPWR in July 2026 to vertically integrate production of its products |
Vitamin and mineral enriched drinks, performance energy drinks and protein bars and shakes |
|
Lactalis’ acquisition of Protein Works from YFM Equity Partners in June 2026 |
Protein shakes, meal replacements, supplements and high-protein snacks with a significant online market |
Production of high protein and BFY foods is being increased in two ways:
- First, established brands are pivoting towards alternative products with more nutritional value. For example, SunRice has recently released a new line of microwavable rice, with at least 10 grams of protein per serving, developed in collaboration with CSIRO. Doritos, Boost Juice and Starbucks all now have high protein alternatives and many yoghurt brands have a ‘high protein’ variant. Healthy alternatives go further than offering higher protein - Pringles Harvest Blends use a sweet potato or multigrain base and almost all soft drink products have a sugar free alternative, with sugar free drinks now making up 65% of the soft drink market in Australia.
- The second way that production of high protein and BFY foods is increasing is through investment into small production chains which are then scaled up. An Australian example of this is in the poultry and egg sector, where recent activity has included KKR’s acquisition of ProTen[1] and Roc Partners’ acquisition of Pace Farm and VOAG. We are also seeing investment into BFY snacks, such as nuts and protein bars, through the acquisition of nut orchards and manufacturers of nut-based foods (such as nut butters and fillings). Investment is also flowing into protein powders, shakes, bars and supplements.
Investors who are considering investing into high-protein and BFY food companies will need to navigate a range of legal issues applicable to the sector and these types of products. This includes conducting due diligence on whether current product claims are compliant, the product is appropriately IP protected, and the risks within the supply chain.
Are product claims compliant?
The Australia New Zealand Food Standards Code (Food Standards Code) prescribes standards for making nutrition and health claims. If a food company is making a nutrition content claim (which includes any claim about the presence of protein, carbohydrates or fat in the product) or a health claim (which states, suggests or implies that a product has or may have a health effect) about a food product, the relevant standards must be satisfied. For example, to make a nutrition content claim about protein, the product must contain at least 5 grams of protein per serving (and 10 grams per serving if the claim is that the product is a ‘good source’ of protein). Further, general level health claims must be pre-approved or self-substantiated and must meet the nutrient profiling scoring criterion.
While breaches of the Food Standards Code are prosecuted and enforced by state bodies (such as the Food Authority of New South Wales), misleading or deceptive nutrition content claims or health claims with widespread consumer impact may attract the attention of the ACCC. Compliance with the Food Standards Code is not enough, and packaging may still breach the Australian Consumer Law (ACL). Penalties for successful prosecutions by the ACCC have included a penalty of A$2.25 million paid by Heinz for misleading health representations about ‘Little Kids Shredz’ for children. This was in 2018, prior to the recent massive penalty increases for breaches of the ACL.
When conducting due diligence on a target food company, it is important to ask the right questions about claims substantiation and regulatory compliance processes. Where appropriate, buyers should seek warranties that product claims comply with the Food Standards Code and the ACL. If nutrition and health claims are relevant to supporting valuation, this is critical. Without sufficient due diligence, there may be post-acquisition risk issues to navigate, including changing recipes, amending packaging to remove claims and re-thinking marketing materials, which may detract from the value and attractiveness of the investment.
Is there IP in the product, who owns it and is it protected?
Many new high protein and BFY foods are product innovations, born from new ideas and underpinned by new manufacturing techniques and technologies. This often represents or is supported by valuable IP and is a competitive advantage in the market. Investors should interrogate whether target food companies have adequately protected their novel ideas, for example, through:
- patent protection
- appropriate confidentiality arrangements to safeguard recipes, know-how and trade secrets, and
- documented agreements with collaborators containing effective assignments of copyright.
Are there Modern Slavery supply chain risks?
In July 2026, the ABC aired a two-part series entitled ‘Duped: Food Exposed’ on food labelling and supply chain issues in Australia which we analyse in more detail in an AgriThinking insight. A large part of the investigation concerned modern slavery in the operations and supply chains of Australia’s food sector.
Currently, the Federal Government is considering amending the Modern Slavery Act to criminalise the failure to prevent modern slavery in a supply chain. This can be especially difficult for food production and manufacturing businesses with complex supply chains, especially if they are involved in importing from other countries. As such, investors need to investigate supply chains of target food companies and consider reasonable steps to prevent modern slavery through the implementation of robust policies and procedures.
A recipe for success
As consumers across the world become more aware of how the food they consume impacts their health and wellbeing, it looks like high protein and BFY foods are more than just a fad. We expect to see more investment in the space, especially given the role of Australia’s food and agribusiness sector in growing and manufacturing a wide range of food and ingredients for domestic consumption and for export to overseas markets.
All investors in the sector should ensure that the marketing claims and supply chains of their target food companies are sustainable and compliant, and that there are IP moats which appropriately protect their product innovations and technology.
