Watchdog Gives Danone's €1bn Huel Takeover the Thumbs Up, Because Apparently Meal Replacement Shakes Aren't a Competition Threat
Regulators decide that a French food giant swallowing a British shake-maker is fine, because apparently the market for powdered meals isn't a competition concern.
In a move that will surprise absolutely no one who has ever seen a supermarket aisle, the Competition and Markets Authority (CMA) has waved through Danone's €1bn (£864m) takeover of British meal supplement maker Huel. The green light comes after a review that presumably involved a lot of deliberating and maybe a few protein shakes.
Huel, the Hertfordshire-based brainchild of Julian Hearn (founded 2015), promises nutritionally complete food products that cut down meal times while delivering essential nutrients. Because who has time to chew anymore? The French food giant Danone, meanwhile, sees this as a golden ticket to grow in the nutrition sector and help Huel achieve its global expansion dreams. It's a match made in corporate heaven.
Danone's UK portfolio already includes baby milk brands Aptamil and Cow & Gate, yoghurt brands Activia and Actimel, and water brands Evian and Volvic. So now they'll add plant-based ready meals, nutrition bars, and health drinks to the mix. Huel has been growing faster than a chia seed in a damp paper towel, expanding its range to include all manner of shakeable sustenance.
Steven Bartlett, the Dragons' Den star and podcaster, was previously a director of the nutrition brand, which has had its fair share of run-ins with the advertising watchdog. Some Huel adverts have been banned for making 'misleading' claims, particularly about the cost savings of replacing a normal diet with meal replacement shakes. Because nothing says 'nutritionally complete' like false advertising.
The CMA gave interested parties a chance to voice concerns about potential competition issues, but in the end, the regulator decided the merger could proceed as is. So, Danone and Huel can now go forth and conquer the world of convenient nutrition, one shake at a time. Both companies have been approached for comment, but we suspect they're too busy blending.
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