This took the formula-milk industry by surprise, because they had taken care to make sure their product contained the same substances as real breast milk. What could be missing? The answer was, of course, bacteria. And, specifically, the bacteria that live on milky nipples and which are particularly common in the guts of breast-fed babies: Bifidobacteria and Lactobacilli. These bacteria break down the sugar in milk (lactose) and produce lactic acid (lactate), so they are classified as lactic-acid bacteria.