Danone Takes Majority Stake in Kate Farms

Danone’s mid-2025 acquisition of a majority stake in Kate Farms marks a significant convergence of organic, non-GMO, and medical nutrition. The deal expands Danone’s presence in specialized nutrition while elevating a plant-based, organic brand known for clinically oriented formulas.

Kate Farms produces organic medical nutrition shakes and tube-feeding formulas made with pea protein, fiber, and phytonutrients, avoiding the top nine allergens and artificial additives. Its focus on clean, mission-driven ingredients has positioned it as a rare alternative in a category dominated by synthetic products.

Danone says the acquisition supports its Renew strategy and integrates Kate Farms with Nutricia, Real Food Blends, and Functional Formularies. CEO Brett Matthews will continue leading the new North American Medical Nutrition unit.

For the organic and non-GMO sector, the move reflects rising interest from major food companies in clinically relevant, high-integrity nutrition. It may expand opportunities for organic ingredient suppliers and regenerative or non-GMO growers able to meet medical-grade sourcing standards. The deal also boosts visibility for plant-based clinical nutrition through Danone’s global network.

Challenges include maintaining Kate Farms’ ingredient standards at scale and navigating insurance and clinical adoption. Even so, the acquisition signals accelerating investment in mission-aligned organic medical nutrition and highlights the strategic value of organic and non-GMO products in specialized health markets.

Sources: Investing.com; FoodBev Media; GlobeNewswire; PR Newswire; Danone and Kate Farms websites.