French consumer goods giant Danone has agreed to acquire UK-based nutrition brand Huel in a deal valued at around €1 billion (£870 million), marking a major move into the fast-growing functional nutrition market.
The acquisition will deliver a significant windfall for Huel’s founder Julian Hearn, as well as investors including Idris Elba and Jonathan Ross, who backed the company during its rapid growth phase.
Founded in 2015 by Hearn and nutritionist James Collier, Huel, short for “human fuel”, began as a direct-to-consumer brand selling plant-based powdered meals online. It has since expanded into snack bars and ready-to-drink products and is now stocked in more than 25,000 retail locations globally.
Chief executive James McMaster said the deal represents a pivotal moment for the business, positioning it for accelerated international expansion.
“With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people,” he said, pointing to growing global demand for convenient, nutritionally complete food.
The acquisition reflects Danone’s strategic push into the “functional nutrition” segment, a rapidly expanding category driven by consumer interest in health, wellness and personalised diets.
Products designed to support gut health, weight management and overall wellbeing have seen strong demand in recent years, with Huel benefiting from trends including the rise of time-poor consumers seeking convenient meal alternatives and the increasing use of GLP-1 weight-loss medications.
Danone, which owns brands such as Evian and Activia, is seeking to strengthen its position in this space as competition intensifies among global food and beverage companies.
Huel has demonstrated consistent growth, reporting pre-tax profits of £13.8 million on revenues of £214 million in 2024. The company, headquartered in Tring, Hertfordshire, employs around 300 people and has built a loyal customer base across Europe and North America.
Its rise has been supported by a strong digital marketing strategy and high-profile endorsements. Among its supporters is 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 earlier venture, Mash Up Media, to a US buyer in 2011. Despite achieving financial independence at a relatively young age, he chose to pivot into the health and nutrition sector, building Huel into one of the UK’s most recognisable 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.
Shares in Danone edged slightly lower in early trading following the announcement, reflecting investor caution over valuation and integration risks. Analysts have previously noted that Huel’s strong brand and growth potential may justify a premium, particularly given its asset-light, direct-to-consumer origins.
The deal also underscores the increasing value placed on digitally native food brands, which have been able to build direct relationships with consumers and respond quickly to evolving dietary trends.
The transaction highlights a broader wave of consolidation in the global nutrition and wellness market, as established players seek to acquire fast-growing disruptors rather than build new brands from scratch.
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 expected to expand significantly over the coming decade.
For Huel, the challenge now will be to scale globally without losing the brand identity and agility that underpinned its success — a balance that will define the next phase of its growth journey.
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Danone to acquire Huel in €1bn deal as functional nutrition market heats up
