Danone: How Huel Acquisition Could Boost Nutrition Portfolio

Danone has revealed its intention to purchase Huel, a UK meal replacement firm, as the company seeks to strengthen its position within the functional nutrition sector.

The acquisition, valued at US$1.2bn, represents a significant development in Danone's Renew Danone Strategy, a framework aimed at delivering sustainable profitable growth.

Antoine de Saint-Affrique, CEO of Danone, has outlined his vision to merge the capabilities of both organisations, bringing together Huel's product portfolio and digital expertise with Danone's international presence and nutritional knowledge.

"Combining [Huel's] range and best-in-class digital capabilities with Danone's global reach and deep nutritional expertise offers exciting opportunities into the new and fast-growing nutritionally complete space, in line with our Renew Danone Strategy," Antoine says in a press release.

"We look forward to learning from one another and unlocking new opportunities and growth for both businesses."

Strengthening Functional Nutrition Presence

The deal will bolster Danone's foothold in the functional nutrition market while expanding its product offering to include meal-replacement shakes, protein-rich meals and portable nutrition solutions.

Danone highlights Huel's established European market position and its robust consumer engagement approach as primary drivers for the purchase. The company particularly emphasises Huel's effective digital presence and online sales performance.

Antoine suggests that Huel's achievements will serve as a blueprint for generating fresh growth opportunities across both companies, while supporting Danone's efforts to refine portfolio management through the Renew Danone Strategy.

This framework aims to focus on acquisitions such as Huel that correspond with Danone's sustainable growth objectives, optimising the corporate portfolio for long-term performance.

The Renew Danone Strategy identifies three fundamental "resets" intended to establish the company's growth model: cultural, executional and financial, and business. These elements are designed to strengthen business fundamentals and position Danone as a frontrunner in the global health and nutrition sector.

James McMaster, CEO of Huel, echoes the growth aspirations, stating in a press release: "With Danone, we will now have the infrastructure, distribution and research and development (R&D) capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow."

Portfolio Expansion Potential

Huel reported revenues of £250m (US$335m) in 2025, suggesting the acquisition will deliver long-term strategic value to Danone.

According to Future Market Insights, the functional nutrition products market reached an estimated value of US$5.9bn in 2025, with projections indicating growth to US$8.9bn by 2032.

Danone currently ranks among the world's largest food manufacturers, operating across dairy and plant-based products, bottled water and specialised nutrition categories, generating more than €27bn (US$31bn) in annual revenues.

The company will also capitalise on emerging trends including the growing adoption of GLP-1 weight loss medications, which have driven increased demand for protein-dense and nutritionally-complete products.

Danone has investigated approaches to appeal to consumers pursuing weight management through products formulated to preserve muscle mass during body composition changes, including its yoghurt drink Oikos.

In an official statement regarding the purchase, Danone notes: "Combining Huel with Danone's scale, capabilities and global reach will accelerate growth, innovation and international expansion. 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 transaction brings together two companies with complementary strengths in the nutrition space, creating opportunities for market expansion and product development. As consumer demand for convenient nutrition solutions continues to rise, the combined entity is positioned to capture a larger share of the growing functional nutrition market.

The acquisition remains subject to regulatory approval, with completion expected in the second half of 2025.