Huel Adds New Funding, Eyes Global Expansion

Huel’s climate credentials are fuelling its new phase of global expansion.

What’s happening: The “nutritionally complete” meal replacement brand raised $82.5M from Morgan Stanley’s climate-centric 1GT fund.

Cashing in on sustainability, the B Corp touts a low per-meal carbon footprint and announced a net zero manufacturing site in the UK – a bold move as the plant-based food market faces uncertainty.

Why it matters: Selling in ~100 countries, Huel caters to time-poor consumers who are health- and environmentally conscious. Made from ingredients like oats, pea and flaxseed, its vegan-friendly products offer functional fuelling – balancing macronutrients, vitamins and fibre – while combating food waste.

Growing pains. Despite reporting ~£144M revenue in 2022 and reaching 900K customers, Huel’s losses totalled ~£10M.

Cutting into profits, inflated global freight prices proved problematic. Making matters worse, the Advertising Standards Agency banned its ads for “misleading” money-saving claims.

On the upside, the Jonathan Ross- and Idris Elba-backed company raised £19.8M at a £441.50 valuation at the end of 2022. Steadying the ship, ex-Wagamama exec David Di Cello came on board as CFO in March 2023, attracting fresh capital six months later.

A possible vote of confidence for the meal shake business, Nestlé acquired a 49% stake in Germany’s yfood for €215M this April.

Takeaway: While some wellness companies have failed to continue their pandemic boom, Huel is riding the wave by playing to its strengths. As more climate-conscious consumers reject meat and embrace functional food, Huel’s growing range may well hit the spot.