The British meal supplement maker Huel is being bought by Danone for a reported €1bn (£864m).
Founded in Buckinghamshire in 2014, Huel is best known for its smoothie powder, which it says is a nutritionally complete replacement for a regular meal. Its investors include actor Idris Elba and broadcaster Jonathan Ross.
It has since expanded its range to include ready meals, nutrition bars, and health drinks, all of which are plant based.
The company has previously gotten into hot water with the UK advertising watchdog, which has banned adverts for its making “misleading” claims.
One such advert made misleading claims about the cost savings associated with replacing a normal diet with meal replacement shakes, the watchdog said.
Huel (a portmanteau of ‘human’ and ‘fuel’) products are currently sold direct to consumer, but the Danone deal will allow it to expand into new markets.
The market for so-called complete nutrition products, aimed at time-poor, health-conscious consumers, is thought to be worth $5.9bn (£4.4bn).
Some experts have questioned the effectiveness, however, of replacing meals with nutritionally rich drinks.
The value of the deal has not been made public, but the Financial Times reported that it is worth around €1bn. It is subject to closing conditions including regulatory approval.
Danone noted that Huel already has a “fan base” in the UK, Europe and the US.
“Huel’s mission to make nutritionally complete, convenient, sustainable food, aligns closely with Danone’s purpose of bringing health through food to as many people as possible,” the company said.
Danone chief executive Antoine de Saint-Affrique said the British company had “best in class digital capabilities”.
James McMaster, Huel’s chief executive, said: “Most people don’t get enough protein, fibre, or the right nutrients. That’s the problem Huel exists to solve.
“With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people.”
Danone is best known for its yoghurt drinks – in addition to its Danone-branded drinks, it also owns Actimel, Activia and Alpro.
Earlier this year, Danone recalled 14 batches of its baby formula and follow-on milk, from the Aptamil and Cow and Gate brands, over fears they were contaminated with toxins.
Its other brands include Cow and Gate baby formula, Evian and Volvic.
