Dive Brief:
- Danone is buying Huel, a maker of ready-to-drink meals and high-protein products, the company announced Monday. The Oikos maker did not disclose the price, but The Wall Street Journal estimated the deal is worth nearly $1.2 billion.
- Danone touted Huel’s “best-in-class” digital execution, direct-to-consumer business and a consumer base in the U.K., Europe and the U.S. The transaction is subject to customary closing conditions, including regulatory approval.
- Danone brands, including low-sugar Too Good and protein-rich Oikos, have been big winners among consumers looking to eat healthier and those on GLP-1s for weight loss. The deal for Huel expands Danone's portfolio of functional and complete nutrition offerings.
Dive Insight:
Danone's purchase of Huel further positions the yogurt giant's portfolio to cater to consumers looking for better-for-you foods and specific nutrients that advance performance or health goals.
“Most people don't get enough protein, fibre, or the right nutrients. That's the problem Huel exists to solve,” James McMaster, Huel’s CEO, said in a statement.
McMaster said Danone will provide infrastructure, distribution and R&D capabilities to allow 11-year-old Huel to enter new markets and cater to additional consumers as demand “for convenient, complete nutrition continues to grow.”
In addition to boosting their intake of protein, fiber and other nutrients, time-constrained consumers have been flocking to portable, more convenient items such as Oikos Fusion. Huel’s powders, meal packets and cups and high-protein shakes fit squarely in this area.
Expanding into ready-to-drink meals also further caters to consumers on GLP-1s, who have suppressed appetites but still need to ensure they receive their complete nutrients.
“What they have achieved in the fast-growing Complete Nutrition space fully resonates with Danone’s mission of delivering health through food,” said Antoine de Saint-Affrique, Danone’s CEO.
