Danone's CEO Antoine de Saint-Affrique ruled out any interest in acquiring Mead Johnson's Enfamil infant-formula business from Reckitt Benckiser this week, citing decades of legal liability tied to necrotizing enterocolitis (NEC) litigation. "Taking something that would bring us liabilities for the next 20 years is not something I will do for the company," de Saint-Affrique said at the Deutsche Bank dbAccess Global Consumer Conference on 4 June.
Reckitt is facing multiple lawsuits over the Enfamil Premature 24 formula in connection with NEC, an intestinal disease affecting newborns. The company was ordered to pay $60m in damages in 2024 to a family whose infant died from NEC linked to the product.
De Saint-Affrique's decision underscores Danone's narrower M&A criteria: strategic fit, return on invested capital (ROIC), and execution risk. Rather than chase distressed assets, Danone is building a nutrition portfolio from growth brands. The company is pushing forward with its planned €1bn acquisition of Huel, the British functional nutrition brand, which is now under review by the UK's Competition and Markets Authority. That deal, announced in March, aims to strengthen Danone's presence in complete nutrition and meal replacements.
Nutrition category momentum
The move aligns with broader industry appetite for protein and functional nutrition. Nestlé just completed its acquisition of the remaining shares in Yfood, a German smart-food brand focused on nutritionally complete meal drinks and bars. Nestlé had owned 49% of Yfood since 2023 and took full ownership for an undisclosed sum. Yfood posted sales of around €150m in 2025, representing double-digit year-on-year growth.
The Yfood acquisition caps Nestlé's first major M&A move under new CEO Philipp Navratil, who took the helm in September 2025. It signals Nestlé's return to its nutrition footing after years of portfolio pruning, with Yfood now anchoring the company's newly formed Nutrition division alongside brands such as Boost and Nestlé Vital.
Danone's protein and RTD push
Danone is also accelerating organic growth in protein and ready-to-drink (RTD) categories. In May 2026, the company expanded its Oikos Protein Shakes line with two new flavours, Strawberry and Mocha Latte. The Mocha Latte variant delivers 30g of protein, 5g of prebiotic fibre, and 95mg of caffeine, positioning it squarely in the emerging "profee" (protein plus coffee) trend.
The RTD protein segment is worth $9.7bn and has grown at a 17% compound annual growth rate over the past three years. Ready-to-drink accounts for more than 50% of all protein product sales. Derek Neeley, VP of Protein Shakes at Danone USA, noted that Oikos Protein Shakes have become a top-growing RTD product and now sell through major retailers including Target, Walmart, and Kroger, plus e-commerce channels.
Danone is targeting consumers taking GLP-1 medications, a growing cohort seeking high-protein, high-fibre options. The company also offers an Alpro Meal To Go range in Europe, broadening its convenient nutrition footprint.
China's infant-formula consolidation
De Saint-Affrique also highlighted structural shifts in China's infant-formula market. The market was valued at €20bn ten years ago and has remained roughly static in size, yet births have declined from 14 million to 8 million over the same period. Seven years ago, the market had about 1,000 players; today it has about 500. The top three players now hold roughly 50% market share, compared to 70-plus percent typical in most other countries, signalling continued consolidation ahead.
Danone faced its own supply-chain headwind this year when cereulide toxin was detected in an ingredient from a Chinese supplier, prompting recalls across multiple infant-formula makers. De Saint-Affrique said the impact was not "material" and that shelf presence has returned to normal, with only minor brand-equity effects that are normalising over time.