Yfood’s liquid food should be known to many of you through advertising with well-known influencers. Now it has become known that Nestlé is aiming for a minority stake. The food company has been criticized for years, which could now also harm Yfood.
What is Yfood? The company was founded in 2017 and was part of the well-known TV show “The Lion’s Den”.
The start-up was able to hold its own, roughly doubling its sales from 2021 to 2022 to 120 million euros. The reason for this was also the marketing strategy of running many campaigns with German-speaking influencers:
However, it has now become known that Nestlé would like to join Yfood – it is apparently only a matter of formalities (handelsblatt.com). The first reactions to it don’t bode well.
Yfood relied primarily on German influencers. Incidentally, a new survival MMO is currently being developed in this country:
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Yfood plans expansion – needs a strategic partner for this
What is Yfood planning and why Nestlé? As the trade journal “Lebensmittel Zeitung” reports, Yfood is planning a strategic partnership with Nestlé. It is hoped that this will result in “beneficial cooperation in the areas of international expansion and sales channels”.
Yfood is about reaching new markets and customer groups. Such projects are often associated with high costs and require a certain know-how. Undoubtedly, Nestlé can deliver both – money and knowledge.
Such a partnership is not uncommon – smaller companies often look for larger partners in order to grow themselves. So far everything looks as if Yfood will remain completely independent. Nestlé therefore has no direct influence on company decisions.
However, the announcement of the minority stake already has a direct impact on Yfood. Because only hours after the announcement, there are already the first reactions to it.
What are the reactions? One of the first to respond was Unge. The German influencer residing in Portugal has long been a close partner of Yfood. He immediately distanced himself:
He hasn’t been a partner since the beginning of the year and it will stay that way. Further down in the tweet he explained why he had only recently promoted Yfood: “Yeah, that was a placement. But by the beginning of the year they were [ein] permanent partner with lettering in the stream and banner in the info box. Such placements will no longer exist in the future”.
Fabian Siegismund also made it clear what he thought of joining Nestlé:
My twitch sponsorship was supposed to start tomorrow, I canceled today because of the Nestle number.
— Fabian Siegismund (@Siegismund) February 28, 2023
He canceled a current sponsorship directly.
Many users are also reminded of the case of “Ankerkraut”. In 2022 Nestlé bought the spice company completely, Ankerkraut also came from “Die Höhle der Löwen” and did a lot of advertising with influencers who brought their own varieties onto the market.
Why is Nestlé considered controversial? The Swiss group has been criticized for years for only looking at profit. The Handelsblatt summarized the biggest allegations in 2019 (via handelsblatt.de):
Nestlé itself never tires of denying the allegations and refers to its website (via nestle.de), where all the questions are clarified. Nevertheless, the group does not manage to shed its controversial image.
How do you feel about Nestlé, Yfood and/or the investment? Leave us a comment on the topic.
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