Danone–Huel, the Protein Market and Process Heat

An acquisition in functional foods, protein ingredient shortages and electric process heat

The UK Competition and Markets Authority has cleared Danone’s acquisition of Huel. Meanwhile, conditions for protein ingredients are tightening, and Arla is electrifying process heat in whey protein production.

CMA Clears Danone’s Acquisition of Huel

On 20 August 2026, the UK Competition and Markets Authority cleared the proposed acquisition of Huel by Danone Holdings (UK) at Phase 1 [1]. Since July, the authority had been examining the transaction for possible restrictions of competition in the UK food market. The decision concludes the UK Phase 1 review; further contractual and regulatory steps still apply to completion of the transaction.

In March, Danone announced a definitive agreement to acquire Huel. Huel develops and markets ‘complete nutrition’ products such as powders, ready-to-drink products, snacks and meal solutions. Danone positions the transaction strategically within functional nutrition and the growing segment of nutritionally complete meals [2]. Huel highlights its digital direct-to-consumer base, international presence and planned use of Danone’s infrastructure, research and distribution [3].

The transaction value of approximately £860 million reported in the trade press has not been officially confirmed by Danone or Huel. Of professional interest is the combination of two growth models: Huel contributes a digitally built brand with direct customer access and strong high-protein positioning; Danone adds industrial scale, international distribution and regulatory experience.

The transaction increases consolidation pressure in the European functional nutrition and protein products market. Following completion, brand positioning, claims, product classification, control of formulations and integration of direct-to-consumer and retail channels will become strategic interfaces. For competitors, the acquisition signals that protein and ‘complete nutrition’ are moving from specialist segments into the portfolio strategies of major food groups [1][2][3].

The Protein Market under Pressure: the Ingredient Base Becomes a Success Factor

Protein has moved beyond sports nutrition into broad food categories: cereals, bakery products, desserts, ready-to-drink products, snacks and ready meals. Food Manufacture cites an analysis for SIAL Paris indicating that more than one in five new food products launched in Europe in 2024 carried a high-protein claim [4]. Demand is consequently growing across several applications at once.

The analysis locates the bottleneck in heavy reliance on a small number of ingredient sources. There is not necessarily a fundamental global shortage of protein, but whey proteins in particular are under pressure. Food Manufacture reports price rises of more than 50 per cent for European food-grade whey powders since the start of 2026 and WPC 80 prices above €26,000 per tonne in some markets [4]. FoodBev Media confirms the sharp increase but gives a substantially lower absolute price for food-grade whey powder [5]. The figures relate to different product categories and markets and are therefore not directly comparable. For buyers and sellers alike, long-term contracts that maintain appropriate prices in favourable and difficult conditions remain crucial.

Whey appeals to formulators because of its amino acid profile, solubility and sensory properties. Switching to other sources is therefore not simply a substitution exercise. Soya, pea, faba bean, chickpea and lentil broaden the ingredient base, although not always in the desired price direction. Brands that secure only a single protein source consequently carry greater cost and availability risks.

Arla: Process Heat Becomes Responsive to Prices and the Grid

According to a report dated 19 August, Arla Foods Ingredients has completed an €8.3 million investment project at its Danmark Protein site in Videbæk. The site processes whey into protein and other dairy ingredients. Heat supply in production tower 4 can now switch between the existing steam system and a new electric heater. The company estimates that the solution will reduce annual CO₂ emissions by around 2,500 tonnes and that the tower could run entirely on renewable electricity for approximately 23 per cent of its operating time [6].

The technical core is the switchable combination of two heat supply routes. The existing steam supply remains available and is supplemented by direct electric heat generation. Arla thereby combines security of supply with the ability to use more electricity when wind and solar generation are high and prices are low. A comparable conversion is planned for production tower 5. If implemented, the company estimates combined annual CO₂ savings of up to 5,200 tonnes from the two projects [6]. All savings and operating figures are company estimates; measurements from ongoing operation have not been published.

The project complements a broader energy system at the same site. For a separate heat pump installation, Arla Foods Ingredients describes a design using 2.8 MW of electrical power to provide 8 MW of heat and 5.7 MW of chilled-water cooling. The heat is intended for a 90 °C network serving applications including cleaning-in-place, heat treatment and air preheating for spray-drying towers [7]. The heat pump addresses simultaneous heating and cooling demand; the electric heater serves a different temperature level and load profile.

Best regards, Andreas Gebhart

Sources

• CMA: Danone / Huel, Phase 1 Clearance, 20 August 2026.
• Danone: Agreement to Acquire Huel, 23 March 2026.
• Huel: Huel Joins Danone, 23 March 2026.
• Food Manufacture: Protein Gold Rush Faces Reckoning, 17 August 2026 (PDF in the editorial archive).
• FoodBev Media: Whey Too Much?, 18 August 2026.
• FoodBev Media: Electrification at Danmark Protein, 19 August 2026.
• Arla Foods Ingredients: Heat Pump Project in Videbæk, accessed 20 August 2026.

Note: These updates provide technical context and do not replace legal or technical assessment of an individual case. Image: AI-generated.