Huel bought by Danone in €1bn deal

Danone to acquire Huel in €1bn deal

British meal supplement maker Huel is being bought by Danone for €1bn (£864m), in a deal that is subject to closing conditions including regulatory approval.

Founded in Buckinghamshire in 2014, Huel is best known for its shake powder, which it says is a nutritionally complete replacement for a regular meal. The company is backed by investors including actor Idris Elba and broadcaster Jonathan Ross.

Huel has expanded beyond powders into ready meals, nutrition bars and health drinks, all of which are plant-based. Its products are sold mainly direct to consumers, with some sales through shops and supermarkets. The company said the Danone takeover would help it expand into new markets.

Growth plans and market opportunity

Danone said Huel already has a strong fan base in the UK, Europe and the US. The French food group said Huel’s mission to provide nutritionally complete, convenient and sustainable food aligned closely with its own focus on health through food.

Danone chief executive Antoine de Saint-Affrique said Huel had “best in class digital capabilities”. Huel chief executive James McMaster said the company was focused on addressing a lack of protein, fibre and key nutrients in many people’s diets.

“With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people,” McMaster said.

The market for so-called complete nutrition products, aimed at time-poor and health-conscious consumers, is thought to be worth $5.9bn (£4.4bn).

Scrutiny of products and advertising

Huel has previously faced action from the UK advertising watchdog, which banned some of its adverts for making misleading claims.

One advertisement was found to have made misleading claims about the cost savings of replacing a normal diet with meal replacement shakes. Some experts have also questioned the effectiveness of replacing meals with nutritionally rich drinks.

Danone is best known for yoghurt drinks and owns brands including Actimel, Activia and Alpro. Its wider portfolio also includes Cow and Gate baby formula, as well as Evian and Volvic. Earlier this year, the company recalled 14 batches of Aptamil and Cow and Gate baby formula and follow-on milk over fears they were contaminated with toxins.