Business23 March, 20263 min read
Danone to Acquire Huel for €1 Billion
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Danone to acquire Huel for about €1 billion. Deal expands Danone's portfolio into functional nutrition and health-focused products.
Acquisition Overview
Danone has entered into a definitive agreement to acquire Huel, the UK-based plant-based meal replacement company, in a deal valued at approximately €1 billion ($1.15 billion), according to multiple sources. The French food giant announced the strategic acquisition on March 23, 2026, marking a significant expansion into the fast-growing complete nutrition space. The deal represents Danone's continued commitment to its 'Renew Danone' strategy, which focuses on health-focused nutrition and higher-growth categories.
“Danone has agreed to acquire Huel for close to €1bn, two sources close to the matter said on Monday, as the French food group expands further into health-focused nutrition.”
The acquisition combines Huel's digital capabilities and product range with Danone's global reach and nutritional expertise, creating opportunities in the new and rapidly expanding nutritionally complete market segment. The transaction is subject to closing conditions including regulatory approval, with both companies expressing enthusiasm about the strategic alignment and future growth potential.
Huel Business Profile
Huel, founded in 2014, operates as a direct-to-consumer focused brand that has developed a comprehensive portfolio of plant-based nutrition products. The company's product range has evolved from its early powdered meal offerings to include ready-to-drink beverages, nutrition bars, hot instant meals, and protein-packed snacks, catering to time-poor and health-conscious consumers. Huel's business model emphasizes convenience and nutritional completeness, positioning itself as a solution for consumers seeking to meet daily dietary targets, particularly protein requirements.
The company generates significant revenue, with sources reporting £214m according to Huel's website, while Reuters cited $284 million in revenue for 2024. Huel maintains strong market presence in Europe and the US, with notable investors including actor Idris Elba, and has cultivated a dedicated consumer base through its digital-first approach and expanding retail distribution.
Market Strategy
The acquisition is strategically positioned within the rapidly growing complete nutrition market, which is estimated to be worth $5.9 billion in 2025 and projected to experience a compound annual growth rate of 6.5% over the next decade. This expanding market segment reflects broader consumer trends toward convenient, nutritionally complete food options and changing attitudes toward healthy eating, particularly as appetite-suppressing weight-loss drugs become more prevalent.
“The market for complete nutrition products was estimated to be worth $5.9bn in 2025, according to Future Market Insights, and projected to have a compound annual growth rate of 6.5% over the next 10 years.”
Danone, one of the world's largest food companies with over €27 billion in annual sales across dairy, plant-based products, bottled water, and specialized nutrition, views the acquisition as a key opportunity to enhance its presence in functional nutrition. The deal will position Huel between Danone's mainstream high-protein offerings and more clinical nutrition assets, creating a comprehensive approach to health-focused nutrition that addresses evolving consumer preferences and market dynamics.
Regulatory Challenges
Despite its market success, Huel has faced several regulatory and reputational challenges throughout its operations. The company has been repeatedly scrutinized by the UK's Advertising Standards Authority, which has banned multiple Huel advertisements for making 'misleading' claims about health benefits and cost savings. One such advertisement was censured for making misleading claims about the cost savings associated with replacing a normal diet with meal replacement shakes.
The company also faced criticism from traditional foodies who objected to its challenge to established culinary norms. Additionally, some advertisements featuring entrepreneur Steven Bartlett, who sold his shares in Huel during 2025, were banned for omitting information about his commercial relationship with the company.
Future Expansion
The acquisition is expected to create significant growth opportunities for Huel through integration with Danone's extensive global infrastructure, distribution networks, and research and development capabilities. Both companies have emphasized the strategic alignment of their missions, with Huel's goal of making nutritionally complete, convenient, sustainable food closely matching Danone's purpose of bringing health through food to as many people as possible.
“The deal will allow the brand to expand into new markets using Danone's infrastructure, distribution and research & development capabilities, Huel CEO James McMaster said.”
Huel CEO James McMaster highlighted that the deal will provide the infrastructure, distribution, and R&D capabilities necessary to expand into new markets and reach more consumers with their nutritional products. Danone CEO Antoine de Saint-Affrique noted that Huel's 'best in class digital capabilities' will complement Danone's established market presence, creating synergies that accelerate innovation and international expansion for both brands in the competitive global nutrition market.
