Danone is one of the leading agro businesses in the world. Its main activity is the production of fresh dairy products, but has also made its presence known in the segment of beverages (bottled water).
It branched out into the production of infant and medical food recently. The CEO of the company, Franck Riboud, who has been the head of the company since 1996, has decided to focus on producing food products based on the health benefits, as part of the company's strategy for the future.
The net turnover of the Danone Group amounted to 1.3 billion in 2008. This was a drop in turnover, as the revenue generated for the year 2007 had been 4.2 billion. But the company made $5.3 billion by selling the Cookies division to the US giant, Kraft Foods.
Despite this, the company's expenses had gone up as it had tried to finance the acquisition of Numico. There was impairment of equity securities in the Russian food company,but Wimm-Bill-Dann did not make things any better. Apart from this, the company had a tough time as the borrowing cost soared in 2008.
Danone currently spends about 1% of its turnover to innovation each year to support its growth. The group decided to focus its development on the subject of health, due to the increase in obesity and cardiovascular disease has led to an awareness of consumers.
Through its active innovation policy, Danone has managed to make some of its products international benchmarks in the field. Thus the case of Actimel, Activia or Taillefine that allowed the group to stand out from the competition while offering products with high added value. In addition the operator is ableto adapt its offering to consumer expectations (communication, packaging are different) as is the case in Japan (Activa to sixteen vegetables).
Tags: Danone, marketing strategy, future plans
[...] Shareholding of Groupe Danone in 2009 of capital): 3. Products, brands, possibilities: technology, innovation, upstream and downstream sectors Products and brands Innovation Danone now spends about of its turnover on innovation each year to support its growth. The group decided to focus its development on the subject of health, due to the increasing problems of obesity and cardiovascular disease which have led to awareness among consumers. Thanks to its active innovation policy, Danone has managed to make some of its products international benchmarks in the field. [...]
[...] The policy manager is now helping improve the image of the brand, as well as its economic viability Competitive position and key competitors Danone, the largest French group, is ranked, eighth globally The Nestlé Group today dominates the world ranking of agribusiness through its position in many market segments (meals, beverages, dairy products, baby food . ) and its accomplished internationalization strategy American groups are also among the top 10 global operators of the sector. Danone appears in the eighth position in the standings, thanks to its strategy of refocusing the activities for which the group has real expertise. [...]
[...] The latter, however, was exceptional considering the divestment of Biscuits to U.S. giant Kraft Foods 5.3 billion). Moreover, the cost of borrowing went up in 2008 due to higher expenses related to financing of the Numico acquisition, and depreciation of equity securities in the Russian food company Wimm-Bill -Dann. Employees by industry and geographic area In 2008, Danone's workforce was 80,143 permanent employees, up over the previous year (ie 3800 jobs created). Managers represent 16% of the total, with 57% men of the group's employees are based in Europe, including 11% in France. [...]
[...] Segment NUMBER OF FACTORIES Production products (Mainly in Argentina, Mexico, Brazil, million Saudi Arabia and Russia) tons (Mainly in France and Indonesia) million liters (Mainly the Netherlands) tons (Mainly the Netherlands) tons Source: Danone data 6. Group news and market conditions in the respective industries The different sectors of Danone experienced different successes during the year 2008. The Fresh Dairy Products Sector (PLF) is the main activity of the group, thanks to the success of brands such as Activia, Actimel, or Taillefine Petit Gervais, which were then broken down into various products (Cheese Activia, Activia Drink in Europe ) and offered in new markets (Austria, Poland, Argentina). [...]
[...] The segment has lost nearly 700 million Euros in turnover over the years, which is also explained by refocusing the group on the Nature waters (Sale of Frucor, brand flavored water). Emerging markets (especially Asia) are now focusing on the part of the industry where sales remain very promising because, among other things, the communication efforts of the group are focused on the health benefits of its products. Danone has significantly strengthened its position in the field of Baby Nutrition through the late 2007 acquisition of Numico. [...]
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