Huel makes vegan, powdered meal replacements aimed at people who “feel short on time” but want healthy, environmentally friendly meals.
Source: Huel
French food and beverage manufacturer Danone said Monday it is poised to buy protein drinks maker Huel as it appeals to a more health-conscious younger generation and the rise of weight-loss drugs forces companies to rethink what people want to consume.
Huel sells a range of nutrient-enriched protein shakes and drinks. It is endorsed by celebrities such as The Diary of a CEO podcast host Steven Bartlett and actor Idris Elba.
Combining Huel’s range and digital capabilities with Danone’s global reach and nutritional expertise represents an opportunity in the “new and fast-growing field of nutritional completeness,” Danone CEO Antoine de Saint-Affrique said in a statement.
“Most people don’t get enough protein, fiber or the right nutrients,” added James McMaster, CEO of Huel. “This is the problem that Huel wants to solve.”
The deal, which requires regulatory approval, is worth about 1 billion euros ($1.15 billion), the Financial Times reported, citing a person close to the company. Danone declined to comment on the value of the transaction.
Danone CEO De Saint-Affrique told CNBC’s Charlotte Reed in 2024 that its portfolio, which includes yogurts and water, is “extremely complementary” to growing health awareness and the use of GLP-1 drugs. Danone also produces specialty foods and baby milk, with key brands such as Activia yogurts, Alpro plant milk and Aptamil infant formula.
According to analysts at ING, food manufacturers are already starting to adapt to new trends by implementing portion controls, tweaking recipes and offering more premium products, which is likely to accelerate as adoption of GLP-1s increases.
The effectiveness of these drugs is still limited in Europe, with about 2% of the adult population currently using them, ING said in a note to clients on Friday, “but this number will increase.”
“Food manufacturers are facing a gradual shift in demand, giving them time to respond by changing products and marketing and investing in markets with less GLP-1 use.”
Estimates of the size of the future global market for GLP-1 drugs vary, with ING predicting the market will reach $100 billion in 2027.
GLP-1 drugs are changing the way Americans eat. Food companies are racing to catch up. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
