French multinational Danone has swooped to snap up meal replacement brand Huel for an undisclosed price.
In line with its turnaround strategy, Danone said the acquisition would enhance its presence in functional nutrition and extend its portfolio into the fast-growing ‘complete nutrition’ space.
Danone expected to use its scale, capabilities and global reach to accelerate growth, innovation and international expansion at Huel.
Danone added Huel’s range, spanning ready-to-drink and powders, was supported by “best‑in‑class digital execution, strong digital direct-to-consumer sales and a fan base in the UK, Europe and the US”.
“We are delighted to welcome Huel and the Huel team into the Danone family,” said Danone CEO Antoine de Saint-Affrique.
“What they have achieved in the fast-growing complete nutrition space fully resonates with Danone’s mission of delivering health through food.
“Combining their range and best-in-class digital capabilities 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. We look forward to learning from one another and unlocking new opportunities and growth for both businesses.”
Huel CEO James McMaster added: “We are so excited to be joining Danone, and today marks the next step for Huel.
“We’ve spent 10 years building a brand with a positive impact on people’s health. We’ve grown into an omnichannel business with a strong direct-to-consumer foundation, an expanding international footprint, and a retail business that’s scaling quickly. At the centre of it all is a loyal customer base.
“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, distribution and R&D capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow. We’re so proud of what the team has built, and excited about what comes next.”
The most recently available accounts for Huel, for the year to 31 July 2024, showed revenues surged past £200m as it rapidly scaled up its offering in supermarkets.
Pre-tax profits at the group also jumped threefold to £13.8m, as the company benefited from improved economies of scale, newfound efficiencies and NPD.
Huel was founded in 2014 by Julian Hearn and nutritionist James Collier in the UK, with McMaster joining as CEO in 2017 to spearhead international expansion.
The transaction remains subject to customary closing conditions, including regulatory approvals.
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