French food and beverage giant Danone has acquired the UK-based meal replacement and functional nutrition brand, Huel, in a deal reported to be worth approximately €1 billion (AUD$1.2 billion).
Huel CEO, James McMaster, will remain in his role, with the brand operating as an autonomous unit within Danone reporting into the company’s European leadership.
McMaster said the partnership unlocks distribution and R&D infrastructure Huel could not have accessed independently.
“Most people don’t get enough protein, fibre, or the right nutrients. That’s the problem Huel exists to solve. With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people,” McMaster said.
The deal is subject to regulatory approvals.
Founded in 2014, Huel produces plant-based foods spanning ready-to-drink shakes, powders, hot meals, and snack bars. It claims all formulated to deliver a full complement of macronutrients and micronutrients. In FY25, the company generated revenue of £250 million, up 16 per cent year on year, and has built a customer base across more than 100 countries.
For Danone, the acquisition extends its functional dairy and plant-based portfolio into what it describes as the ‘Complete Nutrition’ space, a category the company had already begun to enter independently.
In January 2026, Danone’s Alpro brand launched Meal to Go, a nutritionally complete ready-to-drink product positioned as a direct competitor to Huel in European markets.
Analysts noted Danone’s decision to acquire Huel rather than build the category organically reflects both the strength of Huel’s brand equity and the difficulty of replicating its decade-long consumer following.
Danone CEO, Antoine de Saint-Affrique, said the deal aligns with the company’s Renew Danone strategy, which has focused on restoring growth in faster-moving, health-led categories.
“What they have achieved in the fast-growing Complete Nutrition space fully resonates with Danone’s mission of delivering health through food. Combining their range and best-in-class digital capabilities with Danone’s global reach and deep nutritional expertise offers exciting opportunities,” Saint-Affrique said.
The valuation has attracted scrutiny. Analysts at Barclays estimated the deal implies a purchase multiple of approximately 22 times EBITDA based on projected FY2026 earnings of around £40 million on sales of £300 million, a premium well above comparable food and beverage acquisitions. Danone generated €27.3 billion in revenue in 2025 across its dairy, plant-based, water, and specialised nutrition divisions.
According to Future Market Insights, the functional nutrition market is projected to grow from US$5.9 billion in 2025 to US$8.9 billion by 2032. Demand is being driven by convenience, protein awareness, and the rise of GLP-1 weight loss medications, which have increased consumer appetite for nutrient-dense, low-volume food formats that still meet daily nutritional requirements.
