Danone, a French multinational food-products corporation, announced its acquisition of a majority stake in Kate Farms, a plant-based medical nutrition company based in California, USA. Founded in 2011, Kate Farms is known for its organic, plant-based nutrition solutions across medical and everyday nutrition categories. This acquisition strengthens Danone’s specialized nutrition segment, with CEO Brett Matthews set to lead the North American Medical Nutrition division. The move aligns with Danone’s strategy to expand science-based nutritional offerings amid global demographic shifts and growing demand for health-oriented products.
Danone, a global leader in food and beverage products headquartered in France, has taken a significant step in strengthening its medical nutrition division by acquiring a majority stake in Kate Farms, a plant-based nutrition company based in California, USA.
Founded in 2011 by Richard and Michelle Laver, Kate Farms has established itself as a leading innovator in organic and plant-based medical nutrition. The company offers products tailored to people with specific health needs across four main categories, ranging from daily nutrition to specialized medical nutrition.
This acquisition marks a strategic expansion of Danone’s specialized nutrition portfolio, particularly in the North American market.
This partnership aligns perfectly with our science-based and patient-centered approach to specialised nutrition. Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the US and globally.”
Shane Grant, Deputy CEO of Danone Group
While the financial details of the transaction remain undisclosed, Kate Farms’ current leadership team will retain a minority stake. CEO Brett Matthews will assume leadership of Danone’s North American Medical Nutrition operations. Matthews highlighted the alignment of values and shared vision for growth as central to the deal.
Industry analysts, including Barclays’ Warren Ackerman, view this move as consistent with Danone’s broader strategy to diversify and grow in response to demographic challenges such as declining birth rates, which have impacted its infant nutrition segment. The deal follows Danone’s 2024 acquisition of Functional Formularies and further reinforces its commitment to adult medical nutrition, which currently contributes around 20% of the company’s EBIT.
Danone reported a 4.3% like-for-like sales growth in 2024, with total sales reaching €27.37 billion. Its Specialized Nutrition division contributed €8.93 billion, marking a 5.1% increase. The acquisition of Kate Farms solidifies Danone’s position in the growing global market for plant-based and medical nutrition.
