Danone is ramping up its complete nutrition portfolio by snapping up the UK-based, independent meal replacement business Huel.
Founded in 2014 by Julian Hearn, a veteran of Tesco, Waitrose and Starbucks, Huel has expanded its presence across the UK, Europe and the US.
The buyout, yet to be approved by market authorities, aligns with Danone’s Renew strategy and will enhance the business’s presence in the functional nutrition space, as well as launch it into the fast-growing Complete Nutrition category.
Danone intends to scale Huel’s direct-to-consumer ready-to-drink and powdered meals ranges, with global expansion and accelerated growth on the horizon.
Why has Danone bought Huel?
Over 12 years, Huel has become best-in-class within its space, says Danone CEO Antoine de Saint-Affrique.
“With Danone’s global reach and deep nutritional expertise offers exciting opportunities into the new and fast-growing nutritionally complete space, in line with our Renew Danone strategy,” he said.
On the back of the sale, Huel would be able to grow into other markets and formats, including internationally and within more retail spaces, according to CEO James McMaster.
“With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow,” he added.
Huel’s revenues for the year to July 31 2024, the business’s most recent accounts, showed revenues of over £200m and pre-tax profits up to near £14m.
Meal replacement category growth
The announcement follows a positive 2025 year of trading for Danone, with volume, revenue and profit up, by around 4% across the board.
However, it also follows a period of negative infant formula headlines, which led to the FMCG’s shares falling on the back of substantial product recalls due to contamination.
Meanwhile, Europe’s meal replacement boom continues at a rapid pace, evolving from a model of bland powers and shakes, to a more gourmet proposition.
Valued at a little over $2bn (€1.7bn) in 2024, the category is set reach $3.9bn by 2033 (Research & Markets) as hectic lifestyles and health awareness drive demand, and a strong pipeline of innovation scales up distribution.