Milling & Baking News Corporate Profiles - 2019 - 70

COMPANY OVERVIEW

Danone S.A.
Plant-based dairy alternatives key to current and future growth
he past year for Danone S.A. has been one
of adaption, efficiency and innovation.
"Our company is becoming more agile
every day," said Emmanuel Faber, chairman and
chief executive officer of Paris-based Danone
S.A., during a Feb. 19 earnings call with financial
analysts. "We keep adjusting our ways of working and delivering efficiency. And we adapt to
the ever-changing world around us, as exemplified by the impressive acceleration of our innovation rate, supplying a quarter of our total sales
in 2018 from only 16% two years ago."
The main focus for the company over the previous months and for the future is growth within
its plant-based portfolio as Danone strives to
execute its strategy to reach €5 billion in plantbased sales by 2025.
"...we will reach €5 billion in (plant-based)
sales," said Francisco Camacho, executive vicepresident of Essential Dairy & Plant-Based
(E.D.P.) for Danone, on Oct. 22, 2018, during
the company's annual investor day in London.
"This is what in the business lingo you would call
a big, hairy and audacious goal."
Danone's E.D.P. business generates €13 billion in annual sales and represents approximately 53% of company sales. Plant-based products
generate €1.7 billion in sales for the company,

and of that, beverages make up €1 billion in
revenues.
Plant-based beverages and yogurts are considered the "core" of the company's portfolio, accounting for approximately 80% of sales. Key
brands owned by Danone include Silk, Alpro,
So Delicious and Vega. The company's largest
markets for plant-based products are the United
States and Europe.
To aid in its plant-based growth goals, Danone North America in February increased plantbased food manufacturing capacity at its facility
in DuBois, Pa. The site now manufactures the
company's Silk, So Delicious and Vega branded
products.
Other drivers employed to reach €5 billion in
sales include adjacencies, innovation and different ingredients, Mr. Camacho said. New plantbased ingredients Danone worked with this year
include cashew, coconut, rice and oats.
"...We are not just talking about the mainstream

ingredients we have today," Mr. Camacho said.
"...We are exploring and expanding into the
ingredients range according to what consumers
demand in each ... market."
Oat milk innovation has been the key driver
of growth within Danone North America's plantbased portfolio this year. In January, the company
launched Oat Yeah, a new brand of oat milk products within its Silk business. Danone expanded
the Oat Yeah brand into the yogurt aisle in July
with Silk Oat Yeah Oatmilkgurt, and in early
August, the company launched Silk Oat Yeah
Oatmilk Creamer.
Danone's So Delicious Dairy Free brand also
dove into the oat milk trend this year. In February, the company launched So Delicious Dairy
Free Oatmilk Frozen Desserts, in July the brand
introduced Oatmilk Yogurt Alternatives, and in
early September, Danone debuted So Delicious
Dairy Free Oatmilk Creamers.
"...We are perfectly equipped to drive these
(businesses) from the €1.7 billion that we have
today to €5 billion in 2025," Mr. Camacho said.
Danone sold its Earthbound Farm business,
which offers organic packaged salads, fruits and
vegetables, to Taylor Farms as part of its portfolio
management and capital allocation optimization
strategy. CP

Chief executive officer -
Emmanuel Faber

Danone S.A. net sales

Danone S.A. net income

Danone S.A. share price

per share

€1,720

2016

70 \ November 2019

€2,449

2017

€2,349

2018

in millions of euros

€84
€77
€70

€21,944

€24,812

€24,651
€63

2016

2017

2018

€56
Oct.
2018

Dec.

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