Milling & Baking News Corporate Profiles - November 2013 - (Page 88)

Company Overview Groupe Danone S.A. Strong sales outside Europe drive growth G roupe Danone S.A. experienced a "minor revolution" in 2012, in the words of Franck Riboud, chairman and chief executive officer, as markets outside Europe accounted for 60% of the company's business for the first time. "We've moved from getting 60% of sales almost exclusively from four Western European countries to our current situation, where 60% come from markets outside Europe," Mr. Riboud said in reflection of full 2012 financial results. "That's a minor revolution for our teams. And we're very happy about it: in these new countries, demand is strong and populations are growing." The Paris-based company saw sales decline 3% from 2011 in Europe but grow more than 10% in emerging markets and North America combined during 2012. Global sales in fresh dairy increased 2% in 2012, medical nutrition grew 6% and waters and baby nutrition each grew 10% or more. In October Danone joined with four other companies to launch the Yogurt Council in the United Kingdom with the goal of raising awareness of and promoting yogurt. Danone's U.S.-based Dannon Co., Inc. is one of nine companies that make up the National Yogurt Association, a national trade association, in the United States. While Danone's focus in Europe was mostly to shore up profits and reduce costs, including the elimination of 900 management and administrative jobs, it was actively expanding in other regions. The Dannon Co., the largest U.S. yogurt maker, added Greek yogurt to its Activia and Light & Fit lines. The company added dips to its Greek yogurt offerings and also reformulated its Danimals Smoothies to improve the taste and reduce sugar content by 25% in 2013. Dannon operates the largest yogurt manufacturing plant in the world in Minster, Ohio, producing 3 million cups of yogurt daily. In May 2013 Danone said it invested more than $418 million in joint ventures with COFCO, China's largest food company, and with Mengniu, a Hong Kong listed company, to further develop and market dairy products in China. Also in May Danone acquired Happy Family, the fourth largest company in the U.S. baby food sector with a 4% share. Danone entered into an agreement with Seattle-based Starbucks Coffee Co. in July to develop a line of Greek yogurt products under the name Evolution Fresh, Inspired by Dannon. The ready-to-eat parfaits will Chief executive officer - Top brands - 2012 global sales - Franck Riboud 88 \ November 2013 roll out in Starbucks coffee houses in 2014 and in U.S. grocery channels in 2015 with global distribution also planned. Danone bought YoCrunch, which makes yogurt with separately-packaged crunchy toppings, in August to strengthen its offerings in the United States. In October Danone announced it had joined with investor The Abraaj Group in the acquisition of Fan Milk International, the leading maker and distributor of frozen dairy products and juices in West Africa. In addition to financial challenges in Europe, Danone's Dumex unit also faced legal issues in China where it was one of six companies that admitted to anti-monopoly violations as part of a price-fixing probe by the National Development and Reform Commission. Danone was fined about $28 million in the case. Danone was cleared after a false alert of Clostridium botulinum bactiera prompted a recall of baby food products in New Zealand, but the recall had a "significant impact" on third-quarter sales in the Baby Nutrition division in Asia. Danone said it expected sales growth of 4.5% to 5% in 2013, even with continued negative trends in Europe and continued high raw materials and packaging costs. CP $27.9 billion Dannon Danimals Danette Oikos Activia Light & Fit Evian Aptamil 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 - November 2013

Milling & Baking News Corporate Profiles - November 2013