Danone has agreed to acquire Huel, the UK producer of meal replacement drinks, for about €1 billion as the French food giant expands into functional nutrition. Huel specializes in meal-in-bottle products made from plant-based ingredients fortified with vitamins, offering chocolate, banana, and vanilla flavored drinks popular among fitness-focused consumers.

The UK company, which began as a direct-to-consumer business, has expanded into supermarkets where its products feature in lunch meal deals. Huel also sells in the US and Europe, positioning itself at the intersection of convenience and nutrition. The acquisition represents Danone's latest move to capitalize on growing demand for supplements and fortified food and drinks.

Danone, known for Activia yogurt and Evian water, has been actively pursuing opportunities in the functional nutrition space. Huel's chief executive James McMaster said the deal would provide infrastructure, distribution, and R&D capabilities to reach more consumers globally. The acquisition underscores the food industry's shift toward products that combine convenience with nutritional completeness.