Huel bought by Danone in €1bn deal

The British meal supplement maker Huel is being bought by Danone for €1bn (£864m).

Founded in Buckinghamshire in 2014, Huel is best known for its shake 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 got into hot water with the UK advertising watchdog, which has banned some of its adverts for 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 mostly sold direct to consumer, with some sales from shops and supermarkets, but it said the Danone deal would 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 deal 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 (research and development) 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 mineral water Evian and Volvic.