Danone to acquire majority stake in Kate Farms and enhance medical nutrition portfolio

Danone has entered into a definitive agreement to acquire a majority stake in US-based Kate Farms, offering a wide range of plant-based, organic medical and everyday nutrition products. Danone says these complementary products will enhance its specialized nutrition offerings.

Both companies highlight the importance of supporting improved standards of care with nutritional solutions that benefit people’s health to better serve US communities. The partnership allows Kate Farms’ nutrition products to reach more consumers and patients with a wide range of health needs. 

“This partnership aligns with our science-based and patient-centered approach to specialized nutrition,” says Shane Grant, Danone Group deputy CEO. 

“Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the US and globally.” 

The companies note that the transaction remains subject to customary closing conditions, including regulatory approval. 

Shared mission

Once the transaction closes, Kate Farms’ CEO, Brett Matthews, will serve as chairman and CEO of Danone’s North America Medical Nutrition business. Kate Farms’ senior management will retain a minority stake in the combined company. 

Matthews says that Kate Farms shares Danone’s mission, noting that the company is the perfect fit to “continue to make nutrition the foundation of health.” 

“We are both focused on going above and beyond to help people with health needs and the medical professionals supporting those needs in the US. Together, we can bring our innovative, scientifically developed nutritional products to more and more people.” 

“Building on Danone’s expertise, we can also expand internationally,” he continues. “It is rare that two companies come together with the same values and a philosophy of building a growth company that helps people live their best lives, delivered by team members who show their heart and expertise daily.” 

The deal will boost the medical nutrition profile of Danone, while helping Kate Farms to expand internationally.In addition to medical and specialized nutrition, Kate Farms offers products for everyday needs and child nutrition. Earlier this year, the company launched its plant-based Kids Nutrition shake in the US, designed for kids aged one to 13, with eight grams of organic pea protein, 27 essential vitamins and minerals, and DHA for brain and eye health. 

Spotlight on medical nutrition

In 2024, Danone anticipated demand for medical nutrition products to be a “pivotal growth driver” for the company. Last year, it invested €70 million (US$77.8 million) in its production capacity in France to boost its specialized and medical nutrition category. 

Although Danone spots a growing awareness of medical nutrition in healthcare, it states nutrition is not yet fully integrated into medical education. 

During Malnutrition Awareness Week, Nutrition Insight met with Katrien van Laere, Danone’s chief scientific and medical officer, to examine the causes, impacts, and nutritional solutions to disease-related malnutrition. This often overlooked condition can affect 30–50% of European hospitalized patients.  

Meanwhile, the company partnered with Resilience, a remote patient care solution provider, to develop a nutrition and oncology module to help address cancer-related malnutrition.