Milling & Baking News Corporate Profiles - October 2012 - (Page 82)

Company Overview Groupe Danone S.A. European economy drags, but Greek yogurt surges in United States n February, Franck Riboud, chairman and chief executive officer of Parisbased Groupe Danone S.A., said the company’s priorities for the year were “developing its product categories, pursuing investment in countries with high growth potential (Mexico, Indonesia, China, Russia, the United States and Brazil) and supporting operations and brands in Western Europe.” Several months later, it appeared the company was making headway on its goals. In his mid-year letter to shareholders released this summer, Mr. Riboud cited two “transformations” at Danone. First, emerging markets accounted for 51% of Danone’s sales and more than 75% of growth in 2011, “and this growth is sustainable,” he said. Second was the successful incorporation of new Baby Nutrition and Medical Nutrition businesses, of which “the organic growth pipeline is still enormous.” To establish its Greek yogurt in America, Danone advertised its Oikos brand during the Super Bowl on Feb. 5. It was the first yogurt advertisement ever during the most-watched U.S. sporting event. “At the end of 2011, Greek yogurt represented 25% of the dairy product market (in America), compared to 5% only two years ago, and was at one third during the first half of 2012,” Danone said. The Oikos brand grew 88% between the first and second halves of 2011, Danone said, with the United States still seen as a good prospect because overall per capita yogurt consumption is “six times less than that in Europe.” Problems with the European economy in 2011 carried over into 2012. On June 19, Danone reduced its target for trading Chief executive officer – Franck Riboud I operating margin from “stable” to “down 50 basic points on a like-for-like basis.” “Since the end of the first quarter, the Group has faced a swift deterioration in consumption in Southern Europe that has proven steeper than anticipated, especially in Spain,” said Pierre-Andre Terisse, executive vice-president of finance. At the same time, the company left unchanged its 2012 target for sales growth of 5% to 7% and free cash flow at €2 billion because of strong sales in emerging countries and robust performance in Asia, Africa, the Americas, the Middle East, Russia and the C.I.S. The first half of fiscal 2012 was challenging for Groupe Danone amid a tough consumer environment in Europe, but the company moved quickly to manage the situation. “The consumer environment definitely got tougher in Europe, particularly Southern Europe, in the first half of this year,” Mr. Riboud said in late July when firsthalf fiscal 2012 results were released. “At Danone, we moved quickly to manage this new situation in line with our strategic priorities: strengthening our brands and pursuing sustainable, profitable growth.” Of its four divisions, Fresh Dairy Products sales were €5.906 billion in the first half of fiscal 2012 ended June 30, up 4% from the same period of fiscal 2011. Sales in Waters were €1.855 billion, up 11% from 2011. Baby Nutrition sales were €2.090 billion, up 15%. Sales in Medical Nutrition were €624 billion, up 9%. Geographically, first-half fiscal 2012 sales in Europe made up 53% of Danone’s total, Asia 17% and the rest of the world 30%. Sales in Europe were up only slightly, Asia was up 26%, and the rest of the world was up 13%. CP 2011 global sales — €19.3 billion Top brands – Dannon Activia Oikos Evian 82 \ October 2012 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2012

MBN Corporate Profiles - October 2012
Table of Contents
Editorial - Contrasting stories in key figures
Grain-based Foods - Grain-based foods - Soft category sales span the breadth of grain-based foods segment
Prepared Foods - Frozen meals - Innovation may boost a stagnant category
Soup - Category only lukewarm and looking for innovation
Beverages - Beverages - Categories increasingly blur into one another
Meat and Poultry - Meat and Poultry - Meat and poultry prices will rise in 2013 as the full effects of the drought take hold
Dairy - Ice cream sales rebound, Greek yogurt surges U.S. dairy farmers struggle with high feed prices
Confectionary - Confectionary - Cocoa, sugar prices level off
Food Service - Food service - Fast-casual chains lead the way in slow recovery
Nutrition standards change school meal programs
Company Overview - Aryzta AG - North American baking accounts for nearly half of company’s sales
Company Overview - Grupo Bimbo S.A.B. de C.V. - Sharp focus on successful Sara Lee integration
Company Overview - Campbell Soup Co. - Bolthouse acquisition and focus on growth areas provide direction
Company Overview - The Coca-Cola Co. - New operating structure to involve three businesses
Company Overview - ConAgra Foods, Inc. - Frozen food adjacencies, international development and private label will drive growth
Company Overview - Groupe Danone S.A. - European economy drags, but Greek yogurt surges in United States
Company Overview - Dean Foods Co. - Partial i.p.o. of WhiteWave-Alpro under way
Company Overview - Dunkin’ Brands Group, Inc. - Newly public company makes earnings gains
Company Overview - Flowers Foods, Inc. - Seeking growth, management keeps foot to the pedal
Company Overview - General Mills, Inc. - Restructuring program initiated to focus resources
Company Overview - The Hain Celestial Group - Acquisitions drive growth in international ambient grocery
Company Overview - The H.J. Heinz Co. - Company continues to focus on core brands and global growth
Company Overview - The Hershey Co. - Five-year plan targets on five brands
Company Overview - Hillshire Brands Co. - Growth opportunities for ‘new’ meat business
Company Overview - The Kellogg Co. - Pringles acquisition sets company up to expand globally in snacks
Company Overview - Kraft Foods Inc. - Company looks forward to future post spin-off
Company Overview - Nestle S.A. - Keys remain on emerging markets, nutrition
Company Overview - Panera Bread Co. - Chain puts faith in menu innovation, shared leadership
Company Overview - PepsiCo, Inc. - Advertising investments build up brand names
Company Overview - Ralcorp Holdings, Inc. - Creation of center store private brand business initiated
Company Overview - Smithfield Foods, Inc. - Strategic shift is putting more resources into packaged meats business
Company Overview - J.M. Smucker Co. - New product surge coming in current fiscal year
Company Overview - Snyder’s-Lance, Inc. - Announces plans to bring Snack Factory into the fold
Company Overview - Starbucks Corp. - Coffee chain expands in baked foods, juices
TreeHouse Foods, Inc. - Steadfast in its commitment to private label
Company Overview - Tyson Foods, Inc. - Focusing on accelerating, innovating and cultivating its business
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