The acquisition of sports nutrition brand Huel by food giant Danone in a deal worth €1 billion has been cleared by UK competition regulators.
The deal was originally announced in March but last month the Competition and Markets Authority launched a merger inquiry which could have potentially scuppered it.
In the UK, the two businesses overlap in the supply of ready-to-drink meal replacement products to grocery retailers – Danone through its Alpro Meal-to-Go (M2G) meal replacement offering and Huel through its RTD ‘complete nutrition’ products.
RTD meal replacement products are designed as nutritionally complete meals and typically contain a balanced mix of fibre, protein, essential fats, carbohydrates and a number of essential vitamins and minerals.
The CMA found evidence that two businesses had monitored one another’s products and competed directly for customers.
However, it continued: “Taken together, the evidence indicates that whilst the merged entity will have a strong position in RTD meal replacement products and that the parties pose a degree of competitive constraint on each other, sufficient competitive alternatives will remain to constrain the merged entity.
“On this basis, the CMA has found that the merger would not give rise to a realistic prospect of a substantial lessening of competition… in the supply of RTD meal replacement products to grocery retailers in the UK.”
Founded by Julian Hearn (pictured) in 2015, Huel’s products are made from plant-based ingredients such as oats, peas, rice, flaxseed, coconut and sunflower.
Claiming to be backed by science, Huel – which gets its name from the combination of Human + Fuel – are available in a range of products including powder, hot & savoury (such as noodles), ready-to-drink and bars.
Paris-based Danone said in March that the deal for Huel, headquartered in Tring, Hertfordshire, was in line with its ‘Renew Danone’ strategy.
“The acquisition will enhance Danone’s presence in functional nutrition and extend its portfolio into the fast-growing complete nutrition space,” it said.
Dragons’ Den star and Diary of a CEO host Steven Bartlett hailed the firm as a “Great British success story” on LinkedIn and said he had shared a phone call with Hearn that morning.
In 2024 Bartlett came under fire after he promoted Huel on Facebook without disclosing that he was a director at the firm. In two ads subsequently banned by the Advertising Standards Authority, Bartlett was shown drinking a supplement beverage and claiming it was the best product released by the company to that date.
Bartlett then stepped down as a director of Huel last year.
“what a ride! had a beautiful, emotional & reflective call with Huel’s founder Julian Hearn this morning as the news broke!” he wrote in March.
“This company changed my life in so many ways… as a customer, an investor, a board member and as a partner.
“And it serves as a great reminder that successful category defining companies can come out the UK AND can come outside of London!
“This company beat all the odds – a great British success story! ❤️👊🏾
“So happy for all the team!”