Huel acquired by Danone in €1 billion deal

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Emer Moreau Business Reporter

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Huel’s first product was a powder that can be made into a nutritionally complete shake drink.

The British meal supplement company Huel is being purchased by Danone for €1 billion (£864 million).

Founded in Buckinghamshire in 2014, Huel is best known for its shake powder, which it claims is a nutritionally complete replacement for a regular meal. Its investors include actor Idris Elba and broadcaster Jonathan Ross.

It has since expanded its product line to include ready meals, nutrition bars, and health drinks, all of which are plant-based.

The company has previously faced issues with the UK advertising watchdog, which has banned some of its ads for making “misleading” claims.

One such ad made false claims about the cost savings of replacing a normal diet with meal replacement shakes, the watchdog said.

Huel (a portmanteau of “human” and “fuel”) products are mostly sold directly to consumers, with some sales through shops and supermarkets. The deal with Danone is expected to help it expand into new markets.

The market for so-called complete nutrition products, aimed at busy, health-conscious consumers, is estimated to be worth $5.9 billion (£4.4 billion).

However, some experts have questioned the effectiveness of replacing meals with nutritionally rich drinks.

The deal is subject to closing conditions, including regulatory approval.

Danone noted that Huel already has a “fan base” in the UK, Europe, and the US.

“Huel’s mission to make nutritionally complete, convenient, sustainable food aligns closely with Danone’s purpose of bringing health through food to as many people as possible,” the company said.

Danone CEO Antoine de Saint-Affrique said the British company has “best-in-class digital capabilities.”

James McMaster, Huel’s CEO, said: "Most people don’t get enough protein, fiber, or the right nutrients. That’s the problem Huel exists to solve.

“With Danone, we will now have the infrastructure, distribution, and R&D (research and development) capabilities to go further, into new markets and reach more people.”

Danone is best known for its yogurt drinks—besides its Danone-branded beverages, it also owns Actimel, Activia, and Alpro.

Earlier this year, Danone recalled 14 batches of its baby formula and follow-on milk from the Aptamil and Cow and Gate brands over concerns of contamination with toxins.

Its other brands include mineral waters Evian and Volvic.

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