Huel creates vegan powdered meal replacements to cater to people who “think they don’t have enough time” but are looking for a healthy, environmentally sustainable diet.
Source: Fuel
French food and beverage manufacturer Danone It announced Monday that it plans to acquire protein drink maker Huell Inc., as a younger, more health-conscious population and the rise of weight-loss drugs are forcing companies to rethink what people want to consume.
Huel sells a variety of protein shakes and drinks that are fortified with nutrients. It has been backed by celebrities including Stephen Bartlett, host of the podcast The Diary of a CEO, and actor Idris Elba.
Danone CEO Antoine de Saint-Afrique said in a statement that Huell’s range and digital capabilities, combined with Danone’s global reach and nutritional expertise, represent an opportunity in a “fast-growing new field of nutritional completeness.”
“Most people don’t get enough protein, fiber or the right nutrients,” added Huel CEO James McMaster. “That’s the problem Huel exists to solve.”
The deal is subject to regulatory approval and is valued at about 1 billion euros ($1.15 billion), the Financial Times reported, citing people close to the company. Danone declined to comment on the deal value.
Danone CEO De Saint Afrik told CNBC’s Charlotte Reid in 2024 that the company’s portfolio, which includes yogurt and water, is “very complementary” to rising health awareness and the use of GLP-1 drugs. Danone also produces specialty nutritional supplements and infant milks under major brands such as Activia Yogurt, Alpro plant-based milk and infant formula Aptamil.
Food manufacturers have already begun to adapt to new trends through portion control, tweaking recipes and offering more premium products, and that trend is likely to accelerate as GLP-1 adoption increases, according to analysts at ING.
The impact of these drugs in Europe is still limited, with around 2% of the adult population currently using these drugs, ING said in a note to clients on Friday, “but that number is likely to rise further.”
“Food manufacturers are facing a gradual shift in demand, giving them time to respond by changing products and marketing, and investing in markets with lower use of GLP-1.”
Estimates vary about the size of the future global market for GLP-1 drugs, with ING predicting the market will reach $100 billion in 2027.
