Danone Buys Huel for €1 Billion: Idris Elba-Backed Meal Brand Sold
- Danone, the French multinational food company, has agreed to acquire Huel, the British meal replacement brand, in a deal valued at approximately €1 billion (roughly £870 million).
- Huel, founded in 2015, rapidly gained popularity with its powdered meal replacements, marketed as a convenient and nutritionally complete alternative to traditional food.
- The deal is expected to deliver a substantial payout to Huel’s early investors and founders.
Danone, the French multinational food company, has agreed to acquire Huel, the British meal replacement brand, in a deal valued at approximately €1 billion (roughly £870 million). The acquisition, announced , marks a significant move for both companies, positioning Danone to capitalize on the growing market for convenient, nutrition-focused food options and providing Huel with the infrastructure to expand its global reach.
Huel, founded in 2015, rapidly gained popularity with its powdered meal replacements, marketed as a convenient and nutritionally complete alternative to traditional food. The company has since diversified its product line to include ready-to-drink shakes, bars, and hot savory meals, all plant-based and fortified with vitamins and minerals. Currently, Huel products are available in over 25,000 stores worldwide, a substantial increase from its initial online-only sales model.
The deal is expected to deliver a substantial payout to Huel’s early investors and founders. Julian Hearn, the co-founder of Huel, stands to receive approximately £400 million from the sale, according to filings at Companies House. Actor Idris Elba, a prominent investor in the company, and his wife Sabrina, are also expected to receive a significant return on their investment, though the specific amount has not been disclosed. Broadcaster Jonathan Ross, a previous backer of Huel, will also benefit from the acquisition.
The Rise of ‘Complete Nutrition’
Danone’s acquisition of Huel reflects a broader trend within the food industry towards “complete nutrition” products. These offerings, designed to provide all essential nutrients in a single serving, appeal to consumers seeking convenience and a streamlined approach to healthy eating. The market for these products is estimated to be worth $5.9 billion (£4.4 billion), indicating substantial growth potential. However, the efficacy of relying solely on meal replacement products has been questioned by some experts.
James McMaster, Huel’s chief executive, emphasized that the partnership with Danone will accelerate the company’s expansion. “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,” he stated. Danone CEO Antoine de Saint-Affrique echoed this sentiment, highlighting Huel’s “best in class digital capabilities” and alignment with Danone’s mission of bringing health through food.
From Labourer to Multi-Millionaire
The story behind Huel’s success is particularly notable for the personal financial transformation of its co-founder, Julian Hearn. Reportedly a former labourer, Hearn is poised to make £400 million from the sale, a remarkable outcome for the entrepreneur who initially conceived of Huel as a solution to the challenges of maintaining a healthy diet while leading a busy lifestyle. The acquisition underscores the potential for disruptive innovation within the food industry and the rewards available to those who successfully tap into evolving consumer preferences.
The deal is subject to regulatory approval and other closing conditions. Looking ahead, industry observers will be watching to see how Danone integrates Huel into its existing portfolio and leverages its distribution network to further expand the brand’s reach. The acquisition also raises questions about the future of the meal replacement market and whether other major food companies will follow suit with similar investments.