Milling & Baking News Corporate Profiles - 2017 - 80

Company Overview

Danone S.A.
New chapter begins after purchase of WhiteWave

he acquisition of Denver-based WhiteWave Foods Co. took nine months before
finally closing in April, but the $12.5 billion deal is expected to open a new chapter in
the story of Paris-based Danone S.A.
The combination of Danone's North American
dairy business and WhiteWave has created a
top 15 U.S. food company by sales and the largest U.S. dairy business, not including cheese.
With the two companies joined, Danone will
be able to fully deliver its synergy plan, address
current business challenges and accelerate
growth in the second half of the year, Cecile
Cabanis, chief financial officer of Danone, said
after the deal closed.
Danone expects the WhiteWave acquisition
to contribute to annual synergies of $300 million at the operating income level by 2020, constant currency recurring double-digit earningsper-share growth and an increase in full-year
like-for-like sales growth of 0.5% to 1%.
In North America the combined companies
now operate as DanoneWave under the leadership of Lorna Davis, chief executive officer.
WhiteWave brands included Silk, So Delicious,
Earthbound Farm, Horizon Organic and European brand Alpro, which will become part of a
newly created plant-based business unit within
Danone. Danone's U.S. brands include Dannon,

Chief executive officer -
Emmanuel Faber

80 \ October 2017

Oikos, Activia, Light & Fit, Danimals, Danonino
and DanAcitive yogurts.
"Danone and WhiteWave are a perfect match
to build a global leader leveraging consumer
trends and expectations for healthier and more
sustainable eating and drinking choices," said
Emmanuel Faber, chief executive officer of Danone. "With leading positions in some of the
fastest growing, health-focused categories, this
combination will drive our Alimentation Revolution, our business performance and will accelerate our 2020 growth journey.
"2017 is a pivotal year for the execution of
our transformation agenda, as presented last
May at our investor seminar," Mr. Faber said in
comments accompanying first-half 2017 results
in late July, which included confirmation of fullyear guidance for 2017.
Danone reaffirmed its commitment to building a strong, sustainable and profitable model
of growth as part of its "Danone 2020," a
transformation started in 2014. Although noting "a volatile and complex economic environment alongside fast-moving shifts in consumer
trends," the company said it was "uniquely positioned with its healthier categories portfolio,
the strength of its global and local brands, its
people-centric culture and its long stewardship
of sustainability."
Part of the terms of the acquisition required by
the Antitrust Division of the U.S. Department of
Justice included Danone's divestment of its Stonyfield organic yogurt business. The Lactalis Group
agreed to buy Stonyfield for $875 million in July.
In September DanoneWave introduced its
first Non-GMO Project verified yogurts as part
of its Dannon Pledge, a commitment to practices focused on sustainable agriculture, transparency and naturality. The company said it
plans to eventually secure Non-GMO Project
verification for all products of Dannon, Oikos
and Danimals brands.
Along with its prowess in dairy, DanoneWave
also is the largest public benefit corporation in the
United States, which is a legal framework meant to
hold a company to a higher standard than the pure
pursuit of profit, Fortune magazine said. CP

Danone S.A.
net income

in millions of euros
€1,720

2016

2015

2014

€1,282

€1,119

Danone S.A.
net sales

in millions of euros
2016

€21,944

€22,412

2015

€21,144

2014

Danone S.A.
share price

per share
€69

€64

€59

€54
Sept. Dec. Mar. June Sept.
2016
2017

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