Danone expands functional nutrition portfolio with Huel acquisition

Danone has entered into a definitive agreement to acquire Huel, an international company offering complete, nutritionally balanced meal solutions. The French F&B company says the acquisition is in line with its Renew Danone strategy and will enhance its presence in functional nutrition. 

Acquiring Huel will enable Danone to extend its portfolio into the Complete Nutrition space, with Huel’s range of food forms, such as ready-to-drink beverages and powders. 

Antoine de Saint-Affrique, CEO of Danone, says that what Huel has achieved in the fast-growing Complete Nutrition space resonates with Danone’s mission of delivering health through food.

“Combining its range and best-in-class digital capabilities with Danone’s global reach and deep nutritional expertise offers exciting opportunities in 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.”

The transaction remains subject to customary closing conditions, including regulatory approvals.

Accelerating functional nutrition growth

Danone says that combining Huel with its scale will help accelerate growth, innovation, and international expansion.

James McMaster, CEO of Huel, says the company is excited to join Danone. “We’ve spent ten 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 center of it all is a loyal customer base.”

McMaster adds that, with Danone, Huel will 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.

“Most people don’t get enough protein, fiber, or the right nutrients,” he details. “That’s the problem Huel exists to solve.”

In related news, France and the Netherlands signed a Letter of Intent to collaborate with Danone to advance sustainable nutrition and health.

Moreover, Danone opened its OneBiome Lab in Paris-Saclay last year to expand gut health research for future innovation. 

At the launch, Nutrition Insight discussed how to leverage gut microbiome science in everyday nutrition with Danone’s chief research and innovation officer. Isabelle Esser told us that the microbiome has become a “hidden health capital,” expecting more products to come to the market as science advances.