Earlier this year, Danone entered into a definitive agreement to acquire Huel, prompting a review from the CMA.
The purchase of Huel is part of the dairy giant’s ‘Renew Danone Strategy’ and is aimed strengthening its presence in functional nutrition.
Earlier this year, Danone posted its H1 results, with 2026 sales of €13,936 million, up 3.5% LFL; and volume/mix and price up 1.7% and 1.8% respectively. It attributed its solid performance to its health portfolio, citing strong demand for its high protein products and medical nutrition across all regions.
Huel’s model is based on convenient health, serving up customers an array of ‘nutritionally complete’ powders, shakes, meals, snacks, and more since 2015. Having just completed its 10th financial year, the business reached £254 million in revenue.
Huel has a strong presence in the US and Europe – with the UK its largest and fastest-growing market. Its latest financial results show sales in the UK were up 26.5% to £139.3 million; and it is now available in more than 17,000 stores in the UK, with over 100,000 stocking points.
The business has been adding to its portfolio and entering new categories over the years; and combined with Danone’s scale, capabilities and own global reach, the duo will be looking to accelerate innovation and growth further.
Danone has timed the acquisition well as we enter the ‘protein 2.0’ era, with weight loss drugs set to ignite a new driver for this commodity. Huel is well positioned in this space with strong links to ‘nutrient-dense’ and its quick and easy format making it an attractive proposition for those on the likes of GLP-1.
Strategic meal planning will become more important. Those using these drugs often forget to eat, but the need for ‘good fuel’ will become more apparent as GLP-1 goes mainstream. Research is already linking them to malnutrition and deficiencies in key micro- and macronutrients; most notably in vitamin D, iron, B vitamins, calcium and protein.
