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Danone seals €1bn deal for Huel
The French food giant Danone has agreed to purchase British meal supplement company Huel for €1 billion (£864 million), marking a major expansion into the plant-based nutrition sector.
Huel's origins and growth
Founded in Buckinghamshire in 2014, Huel-short for "human fuel"-built its reputation on powdered shakes marketed as nutritionally complete meal replacements. The brand has since diversified into ready meals, protein bars, and health drinks, all plant-based.
Investors include actor Idris Elba and broadcaster Jonathan Ross. While Huel primarily sells directly to consumers, its products are also available in select shops and supermarkets.
Regulatory scrutiny and market potential
Huel has faced criticism from the UK's advertising watchdog, which banned several of its adverts for making "misleading" claims. One disputed campaign overstated cost savings from replacing traditional meals with its shakes.
The global market for complete nutrition products, targeting health-conscious but time-poor consumers, is estimated at $5.9 billion (£4.4 billion). However, some experts question whether liquid meal replacements can effectively replace whole foods.
Strategic fit for Danone
Danone, known for brands like Actimel, Activia, and Alpro, said Huel's mission aligns with its own: "bringing health through food to as many people as possible." The acquisition will provide Huel with broader distribution, research capabilities, and access to new markets.
"Most people don't get enough protein, fibre, or the right nutrients. That's the problem Huel exists to solve. With Danone, we will now have the infrastructure to reach more people," said Huel CEO James McMaster.
Huel CEO James McMaster
Danone's recent challenges
Earlier this year, Danone recalled 14 batches of baby formula and follow-on milk from its Aptamil and Cow & Gate brands due to contamination concerns. The company also owns mineral water brands Evian and Volvic.
Next steps
The deal remains subject to regulatory approval and other closing conditions. Danone highlighted Huel's strong digital capabilities and existing fan base in the UK, Europe, and the US as key assets.
