Danone Secures Huel in €1 Billion Takeover to Expand Nutrition Portfolio
In a landmark move within the food and beverage sector, Danone, the French multinational known for brands like Evian and Activia, has finalized the acquisition of Huel, the British plant-based nutrition company, in a deal valued at approximately €1 billion (equivalent to £870 million). This strategic purchase underscores Danone's aggressive push into the rapidly growing functional nutrition market, driven by increasing consumer demand for personalized health and gut wellness products.
Substantial Payouts for Key Stakeholders
Julian Hearn, co-founder of Huel, stands to gain significantly from this transaction. Based on filings at Companies House, Hearn owns between 25% and 50% of the business, potentially translating to a windfall of €250 million to €500 million. Hearn, who also serves as the chief marketing officer, launched Huel in 2015 alongside nutrition specialist James Collier, initially selling food powders online. The company has since expanded its product line to include snack bars and meals, fortified with vitamins and made from a blend of plant-based ingredients, now available in over 25,000 stores globally.
Notably, actor Idris Elba and his wife Sabrina are among the investors in Huel, though the exact size of their stakes remains undisclosed. The deal is expected to provide them with a substantial payout. Other high-profile backers have included TV presenter Jonathan Ross, who previously invested in the business, and Steven Bartlett, host of The Diary of a CEO, who was a director until stepping down last year. In 2024, Huel faced scrutiny from the advertising watchdog for failing to disclose its commercial relationship with Bartlett in Facebook promotions.
Strategic Growth and Market Impact
James McMaster, chief executive of Huel, described the acquisition as the "next step" for the brand, a contraction of "human fuel." He emphasized that partnering with Danone will enhance Huel's infrastructure, distribution networks, and research and development capabilities, enabling expansion into new markets and reaching a broader audience as demand for convenient, complete nutrition continues to surge.
Headquartered in Tring, Hertfordshire, Huel employs around 300 people and has gained popularity among time-poor urban professionals and users of GLP-1 weight-loss drugs. Financial performance has been robust, with the company reporting pre-tax profits of £13.8 million on revenues of £214 million in 2024, according to its latest annual accounts. Revenues subsequently climbed to over £250 million the following year, maintaining profit margins of about 10%.
Broader Industry Context and Competitive Landscape
This acquisition marks Danone's latest effort to capitalize on the booming functional nutrition sector, which is fueled by trends toward health-conscious eating and personalized dietary solutions. However, the deal comes amid mixed fortunes in the industry. For instance, Applied Nutrition, a UK competitor of Huel, reported a more than 50% increase in sales and pre-tax profit for the six months to January but saw its shares drop by up to 13% after warning that the war in Iran could disrupt trading in the latter half of the year.
Julian Hearn's entrepreneurial journey includes prior success with Mash Up Media, an affiliate marketing company he founded in 2008 and sold to US-based Internet Brands in 2011. Reflecting on that sale, Hearn noted he "could have retired" at age 40 but instead pivoted to the health industry, leading to the creation of Huel. With this new acquisition, Danone is poised to strengthen its market position, while Huel's stakeholders celebrate a transformative financial outcome.
