French consumer goods giant Danone has agreed to acquire British nutrition brand Huel in a deal worth around €1bn (£870m), marking a major step into the fast-growing functional nutrition market.
The acquisition will bring a significant windfall to Huel founder Julian Hearn, as well as investors such as Idris Elba and Jonathan Ross, who have supported the company during its rapid growth period.
Huel, short for “Human Fuel,” was founded in 2015 by Hearn and nutritionist James Collier and began as a direct-to-consumer brand that sold plant-based meals in powder form online. The offering has since expanded to include snack bars and ready-to-drink beverage products and is now available in more than 25,000 retail stores worldwide.
CEO James McMaster said the deal was a pivotal moment for the company and positioned it for accelerated international expansion.
“With Danone, we now have the infrastructure, distribution and research and development capabilities to expand even further into new markets and reach more people,” he said, citing growing global demand for convenient, nutritious foods.
The acquisition reflects Danone’s strategic push into the functional nutrition segment, a fast-growing category driven by consumer interest in health, wellness and personalized nutrition.
Products to support gut health, weight management and general wellness have seen strong demand in recent years. Huel benefited from trends such as increasing demand from time-poor consumers for convenient meal alternatives and the increasing use of GLP-1 drugs for weight loss.
Danone, which owns brands such as Evian and Activia, is looking to strengthen its position in this space as competition between global food and beverage companies increases.
Huel has seen continued growth, reporting pre-tax profits of £13.8m in 2024 on sales of £214m. Headquartered in Tring, Hertfordshire, the company employs around 300 people and has built a loyal customer base across Europe and North America.
His rise was supported by a strong digital marketing strategy and high-profile endorsements. His supporters include Steven Bartlett, who previously served as a director before stepping down last month.
For Hearn, the deal marks a second major entrepreneurial success following the sale of his previous company Mash Up Media to a US buyer in 2011. Despite achieving financial independence at a relatively young age, he decided to enter the health and nutrition sector, turning Huel into one of the UK’s best-known challenger brands.
The acquisition now provides the scale and resources needed to compete globally, particularly in markets where distribution and regulatory complexity can act as barriers to growth.
Danone shares fell slightly in early trading following the announcement, reflecting investor caution over valuation and integration risks. Analysts have previously pointed out that Huel’s strong brand and growth potential could justify a premium, especially given the asset-light, direct-to-consumer company.
The deal also underscores the increasing value placed on digitally native food brands that have been able to build direct relationships with consumers and respond quickly to evolving food trends.
The deal underscores a broader wave of consolidation in the global nutrition and wellness market as established players look to acquire fast-growing disruptors rather than build new brands from the ground up.
For Danone, the acquisition of Huel represents both a defensive and offensive move – strengthening its portfolio while positioning itself to capture a larger share of a market that is expected to grow significantly in the coming decade.
For Huel, the challenge now is to scale globally without losing the brand identity and agility that underpins its success – a balance that will determine the next phase of its growth journey.
