French food and beverage giant Danone is set to buy meal-replacement drink provider Huel for €1bn to expand its presence in the functional nutrition market.

The company said the acquisition will “extend its portfolio into the fast-growing complete nutrition space”. Huel claims its drink powders and premixed shakes are nutritionally complete meal replacements and notes the cost and time savings compared to traditional food.

“We are delighted to welcome Huel and the Huel team into the Danone family,” said Antoine de Saint-Affrique, Danone’s chief executive. “What they have achieved in the fast-growing complete nutrition space fully resonates with Danone’s mission of delivering health through food.

“Combining their range and best-in-class digital capabilities with Danone’s global reach and deep nutritional expertise offers exciting opportunities in the new and fast-growing nutritionally complete space, in line with our Renew Danone strategy.”

Huel, founded in 2014 by British entrepreneur Julian Hearn, is expected to post revenues of over £250 million in 2025, with an EBITDA margin of around 10 per cent, the Financial Times reported. Hearn is the company’s current largest shareholder, alongside London-based venture capital firm Highland Europe and Morgan Stanley.

The product targets young professionals and is particularly popular in the tech sector. Launched a year after US competitor Soylent, both drinks are consumed widely in Silicon Valley; Soylent’s first investment round was led by Silicon Valley stalwart Andreessen Horowitz.

A 2025 study found that both drinks – alongside a number of other popular protein powders – contained levels of lead that exceed the legal limits under California law. Both companies noted at the time that California’s legal lead limits are significantly lower than those in other jurisdictions, including the EU, and that they display the required warning labels in the state.

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