Danone has agreed a deal to acquire British meal replacement brand Huel for approximately £1billion, marking a move into the functional nutrition sector.
The acquisition reflects Danone’s strategy to expand its presence in fortified food and beverage products.
The Paris-based group, known for brands including Activia yoghurt and Evian water, said Huel’s “complete food” range aligns with shifting consumer preferences.
Both companies said Huel’s powders, snack bars and ready-to-drink products are seeing increased demand from users of GLP-1 weight-loss treatments and health-focused consumers.
The global complete nutrition market is estimated to be worth $5.9billion.
Julian Hearn founded the company after leaving formal education at 16 with few qualifications.
He worked in retail and later in manual labour before returning to education in 1991, eventually completing a university degree.
Mr Hearn went on to build a career in marketing, holding senior roles at companies including Starbucks, Tesco and Waitrose.
The drink is available in meal deals in Sainsbury’s
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GETTYHis first business, Mash up Media, was launched in 2008 with £1,500 and sold three years later while generating £2.5million in annual profit.
Huel was launched from a garage in Buckinghamshire on June 17, 2015, with the name derived from “human” and “fuel”.
The business initially operated as a direct-to-consumer brand before securing supermarket distribution for its products.
Within four years, the company had reached a £40million annual run rate.
The founder, Julian Hearn, left school at 16 with virtually no qualifications
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Huel
Investment firm Highland Europe invested £20million in 2018, valuing Huel at £220million.
The company is expected to report revenues exceeding £250million for 2025, up from £214million the previous year, with an EBITDA margin of around 10 per cent.
Celebrity investors have included Idris Elba, Jonathan Ross and entrepreneur Steven Bartlett.
Morgan Stanley’s climate-focused fund 1GT also invested in November 2023.
Antoine de Saint-Affrique said: “Huel is a great brand and smack on where the consumer is going.”
He added that Huel would benefit from Danone’s research and development capabilities, while the group would gain from the UK firm’s digital marketing and direct-to-consumer expertise.
James McMaster said convenience remains central to the brand’s appeal, particularly among younger consumers.
He said: “Most people don’t get enough protein, fibre, or the right nutrients. That’s the problem Huel exists to solve.”
Mr McMaster added: “With Danone, we will now have the infrastructure, distribution and research and development capability to go further, into new markets and to more people.”
Big name backers include Sir Idris Elba
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PAThe deal values Huel at nearly double its $560million valuation from a 2022 funding round.
Mr McMaster will continue to lead the business as an autonomous operation, reporting to Danone’s head of Europe.
The company previously explored a potential initial public offering in 2021 before pursuing a sale.
Mr Hearn remains among the largest shareholders alongside Highland Europe and Morgan Stanley.
The acquisition follows Danone’s recent purchases of US medical nutrition firm Kate Farms and Belgian microbiome specialist Akkermansia Company.
Huel’s plant-based products, fortified with vitamins and protein, are sold across Europe and the US.