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Danone strengthens its leadership positions
Last update april 2010
:: Danone is the world’s leading producer in volume of Fresh Dairy Products, selling a total of 5.1 million tons in 2009. The division accounts for roughly 60% of the group’s sales and posted growth of 4.6% in volumes in 2009. It has a global market share of some 27% and is present in forty countries. In 2009, the Fresh Dairy Products division posted sales turnover amounting to €8.6 billion.
Nevertheless, 2009 was a year of contrasting growth trends for the FDP division, as activity slowed the first half, but gained speed over the remainder of the year. The division posted greater growth in volume in 2009 than it did in sales. This evolution stems in great part from the product range repositioning strategy and adjustment of sales pricing based on markets, which helped the division remain competitive and supported its rapid and effective adaptation to the impact of the crisis on buying power. Another important riposte to the sagging markets was innovation. The subsidiary companies thus developed the ranges on their markets: Activia Breakfast in Bulgaria and Portugal, Activia Intensely Creamy in the United Kingdom, Activia Drink in Brazil, spoonable Bio (Activia) in China, Danimals Crush in the United States, and Danonino yoghurts. These variations are creating new consumption trends.
In 2009, in an effort to adapt to new consumer behaviour and take into account the effects of the crisis, the division focused on economic accessibility and added-value (dubbed “affordvaluity”), which made it possible for FDP to reach consumer categories with weaker purchasing power, while guaranteeing flavourful products of nutritional quality.
The four flagship lines alone were responsible for 54% of the Fresh Dairy Products division’s turnover in 2009: fermented dairy product Activia, probiotic dairy product Actimel, fortified fromage frais Danonino (or Danimals or Petit Gervais), and Danacol, a cholesterol-lowering dairy product.
