Danone Buys Huel In €1 Billion Deal As Consumers Seek Functional Plant Protein

Danone is set to buy Huel, a plant-based protein brand based in the UK, for €1 billion.

The deal comes as Danone seeks to expand into functional protein and nutrition products, which consumers are increasingly prioritizing.

According to Danone, a traditionally dairy-focused French multinational, it has now entered into a “definitive agreement” to acquire Huel, which the company referred to as a “leading player” in “nutritionally balanced meal solutions.”

As reported by the Guardian, the deal is worth approximately €1 billion ($1.15 billion). Huel’s co-founder, Julian Hearn, is expected to make around £400 million ($500 million) from the sale. Huel’s celebrity backers include Idris Elba and Sabrina Dhowre.

“We are delighted to welcome Huel and the Huel team into the Danone family. What they have achieved in the fast-growing Complete Nutrition space fully resonates with Danone’s mission of delivering health through food,” said Danone CEO Antoine de Saint-Affrique.

Huel was founded in 2014 and makes plant-based powders and drinks, snacks, and supplements. Its core powders and shakes are designed to be nutritionally complete meal replacements, while Huel Black Edition includes extra protein and fewer carbs.

“Combining their 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,” added Saint-Affrique. “We look forward to learning from one another and unlocking new opportunities and growth for both businesses.”

‘Most people don’t get enough protein’

Adobe Stock While some may not eat enough protein, research shows that most people in the UK and the US do

Danone already owns the plant-based milk brands Silk, which is one of its top three sellers, and Alpro. Recent SPINS data showed that the plant-based sector is evolving to meet consumer expectations, which are increasingly focused on functional, sustainable, and high-protein foods that have a perceived “health halo.”

As previously reported by The Grocer, Huel’s total income was £184.5 million from 2022 to 2023, representing a nearly 30 percent increase in revenue from the year before. In 2024, Huel’s revenue surpassed £200 million, and its profits tripled.

Huel CEO James McMaster said, “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, as demand for convenient, complete nutrition continues to grow.”

On average, people in the UK and the US eat more than enough protein compared to the recommended daily amount. Protein is by definition an essential macronutrient, but experts have suggested that the high-protein trend is unnecessary for most people.