Can Danone grow Huel without changing its DNA?
Just over a decade since its founding, Huel is shaking things up. After the CMA’s approval of the Danone acquisition, the question now is whether Danone can grow it without making it less ‘Huel’.
Huel is a unique cult brand that has built a loyal following. It also continues to appeal to newer customers who are busy and health-conscious.
That combination has created something more valuable than a successful product range. Huel has built a community around a clear proposition and distinctive personality.
Danone brings the scale, distribution and global reach to put Huel in front of millions more people. The temptation will be to make Huel work for everyone, but if the proposition becomes more diluted, it stops being the Huel people value.
The route to growth is not to reinvent the brand, but to double down on what works: a clear nutritional proposition, genuine convenience, a distinctive personality and a direct relationship with its community. Danone’s focus should also be on removing the existing barriers for Huel. This includes expanding availability, accelerating international growth and strengthening innovation.
The opportunity is not to turn Huel into another Danone product. It is to use Danone’s scale to help more people discover Huel as it already is. That will ultimately determine whether this move delivers sustainable growth or becomes another acquisition that looks better in the boardroom than it does to its customers.
Sammy Allanson, client partner lead, Sullivan & Stanley
Health-conscious choices
Everyone is talking about GLP-1s. Most of that conversation asks how businesses should respond to GLP-1 users specifically. But the more useful question is what GLP-1s tell us about a shift in shopper behaviour that was already underway before the drugs went mainstream.
NIQ data has shown zero and low-sugar soft drinks growing volume share for several years running. I was shocked to see that when we compared purchase behaviour across drinks, shoppers on GLP-1 medication and shoppers who simply describe themselves as health-conscious ask almost identical questions at the fixture.
The biggest change isn’t what people are buying, it’s how they’re buying. They’re spending longer looking at the fixture, turning packs over, comparing products. They’re asking what they’re getting for their money. If they’re going to spend a little more, they want to know why.
That’s where I think the opportunity lies. Rather than asking how we build products specifically for GLP-1 users, we should be asking how we build products for a shopper who is becoming more health-conscious, more informed and more intentional in the choices they make.
Al Duffield, founder, Vital Drinks
Cost of living behaviour
The cost of living crisis looks likely to remain for some time. In the past, that might have meant a fairly straightforward shift towards cheaper options. Today we’re seeing something more nuanced.
While for some households there simply isn’t room to trade up, shoppers aren’t universally racing to the bottom. Someone might buy own label in one part of their basket, then pay more somewhere else because they can see the difference.
Everyday categories can be particularly interesting here. The difference between standard and premium might only be a few pounds, so the trade-up feels relatively accessible.
I think of these as “golden basket” moments: the products where, despite making compromises elsewhere, people think it’s worth it.
For retailers, understanding where those moments exist matters. Challenger brands have an interesting role to play here. Retailers need brands that understand what their shoppers want, where they’re prepared to spend more and why.
We’ve seen this in our partnership with Waitrose. Their shoppers value quality and are often willing to pay more when they can feel the difference, which is why we’ve introduced our premium 4-ply quilted toilet paper.
As retailers rationalise ranges, every product has to earn its place. Getting this right creates an opportunity to grow category value without relying solely on price promotion. Even when money is tight, people don’t want everything to feel like a compromise. The opportunity is understanding what they still believe is worth it.
Julie Chen, CEO & founder, Cheeky Panda
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