Danone To Acquire Majority of Kate Farms, Specialized Pediatric Shakes

May 12, 2025

Kate Farms creates shakes for everyday nutrition and liquids for specialized medical needs, many for tube feeding.

Danone North America says it has an agreement to acquire a majority stake in Kate Farms, a Goleta, Calif., maker of plant-based, organic nutrition products for both medical and everyday needs.

Neither price nor exact size of the equity stake was not disclosed. Kate Farms’ senior management will retain a minority share in the combined business.

“Kate Farms began with a little girl named Kate Laver, who couldn’t tolerate standard tube feeding formulas,” according to the website. “Her parents, Richard and Michelle … created a shake made with organic, plant-based ingredients and none of the common allergens or artificial colors, sweeteners or flavors found in traditional formulas.”

That’s the foundation for the company’s products, which include shakes for everyday nutrition and for specialized medical needs, many for tube feeding, such as Peptide 1.5, Glucose Support 1.2 and Renal Support 1.8.

“Kate Farms’ highly complementary products will enhance Danone’s specialized nutrition offerings,” Danone said.

Following the closing of the transaction, Kate Farms’ CEO Brett Matthews will become chairman and CEO of Danone’s North American Medical Nutrition business. Medical Nutrition is part of Danone's Specialized Nutrition business and consists of the Nutricia, Real Food Blends and Functional Formularies brands -- and soon Kate Farms.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.