Danone has agreed to acquire UK-based meal supplement maker Huel for €1 billion (£864 million), as the company expands its presence in the growing market for nutritionally complete food products. The deal remains subject to regulatory approval and other closing conditions.
Huel said the acquisition would support its expansion into new markets, building on its existing direct-to-consumer business.
Huel’s Product Range And Growth
Founded in Buckinghamshire in 2014, Huel produces plant-based meal replacement products designed to provide complete nutrition.
Its core offering is a powdered shake intended to replace traditional meals.
The company has since expanded into ready meals, nutrition bars, and health drinks.
Huel’s investors include Idris Elba and Jonathan Ross.
The brand name combines the words “human” and “fuel,” reflecting its focus on functional nutrition.
Most of its sales come through direct online channels, with additional distribution through retail outlets and supermarkets.
Strategic Rationale For Danone
Danone said Huel’s focus on convenient and nutritionally balanced food aligns with its broader strategy.
Chief executive Antoine de Saint-Affrique highlighted Huel’s digital capabilities and its established consumer base in the UK, Europe, and the United States.
Huel chief executive James McMaster said the partnership would provide access to Danone’s infrastructure, distribution network, and research capabilities.
He said the company aims to address gaps in nutrition, including insufficient intake of protein, fibre, and other nutrients.
Market Context And Industry Trends
The global market for nutritionally complete food products is estimated at approximately $5.9 billion (£4.4 billion).
These products are typically marketed to consumers seeking convenience and balanced nutrition.
However, some experts have raised concerns about replacing traditional meals with liquid or processed alternatives, questioning long-term effectiveness.
Huel has also faced regulatory scrutiny.
The Advertising Standards Authority previously banned some of its advertisements for making misleading claims, including statements about potential cost savings from replacing regular meals.
Danone’s Broader Portfolio
Danone’s portfolio includes dairy and plant-based products such as Actimel, Activia, and Alpro, as well as bottled water brands Evian and Volvic.
Earlier this year, the company recalled batches of baby formula products under the Aptamil and Cow & Gate labels due to contamination concerns.
The acquisition of Huel adds a fast-growing category to Danone’s existing product lines.
Featured image credits: Wikimedia Commons
For more stories like it, click the +Follow button at the top of this page to follow us.