Letter to our Shareholders Winter 2015/2016

In 2015 we went to work, laying the groundwork for strong, profitable, sustainable growth in 2020.

Danone Climate Policy

Danone commits to ambitious new climate policy
Target: zero net carbon emissions within its direct and shared
scope of responsibility

Danone invests €240 million in new facility

Danone invests €240 million in new facility in Netherlands to capitalize on growing demand for its Early Life Nutrition brands.

Danone and B Lab announce a partnership

Danone and B Lab announce today an open source cooperation agreement that aims to accelerate the process for large, publicly listed multinationals to become certified as B Corps.

Nutrijournal : Eating habits are a cultural thing

"Danone at a glance" Video!

Who we are, how we work, what we do, our mission and our values: discover our “Danone at a Glance” video!


Two Danone intrapreneurs took part in the ‘Ticket for Change Tour’, an enlightening 12-day journey in view of changing society through entrepreneurship and innovation.

Danone and Veolia announce unique global alliance to meet the challenge of Climate Change

Danone and Veolia today announced an innovative strategic partnership focusing on the water cycle, waste management, sustainable agriculture and energy efficiency, to meet the challenge of climate change.

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A global presence

Adelina, Kosumo, Song, Alexei, Pam and João now have something in common: they recently tasted the flavours and benefits of Danone products for the first time.

in 2012 Russia became the company’s
leading market.

Danone is continuing its expansion. Its fast-growing geographical footprint reveals a new global equilibrium.

+60% of sales are now generated outside of Europe.

Find out more about the new global equilibrium


The new global equilibrium

Danone in the world

The Company’s new global equilibrium is the result of a geographical diversification and expansion strategy initiated in the mid-1990s and involving:

  • • refocusing on 4 agri-food business lines with a strong potential for international growth,
  • • conquering new markets (3 to 4 countries per year),
  • • winning over new regular consumers in the countries where Danone has long been present.


1996 : 80% of sales were generated in Europe

2013 : +60% of sales were generated outside of Europe.

2013: THE TOP 10 COUNTRIES in % of the company’s 2013 global turnover

  1. Russia
  2. France
  3. United States
  4. China
  5. Spain
  6. Indonesia
  7. Mexico
  8. Argentina
  9. United Kingdom
  10. Brazil

Why did Adelina, Kosumo and the others recently prefer a Danone product? The Company successfully adapted its product offering to the needs and characteristics of their respective countries.

Danone has chosen to focus its business development on 6 priority countries: Mexico, Indonesia, China, Russia, the United States, Brazil.
Each of these countries has different cultural, geographic and demographic parameters which must be approached differently, progressively.

Bonafont water used to be too expensive for Adelina. Since a micro-factory opened near her home, Bonafont has become affordable and Adelina was able to find a job there.

Danone has successfully reinvented its industrial and social model to adapt to the characteristics of the Mexican market. Today, the country is one of the company’s growth drivers in Latin America, across all business lines.


Workforce: 13,500

Plants: 32

Danone has been present in Mexico for some 40 years

Fresh Dairy Products, Waters, Baby Nutrition & Medical Nutrition are represented in Mexico.


Now worrking at

Find out more about Danone in Mexico


danone in mexico


To reduce the transport costs associated with having to cover 2 million km2, the local Bonafont teams invented a new decentralised industrial model, opening a number of local micro-factories. By doing this, the brand has successfully established itself close to Mexico’s rural populations at minimal cost, whilst also creating jobs.


In 2009, Bonafont launched the first 100% recycled and 100% recyclable PET bottle. The following year, it became available in a 4-litre format.

Pepenadores: integrate wastepickers into the Bonafont recycling chain

Financed by the Danone Ecosystem Fund and launched by the Mexican subsidiary in partnership with the Ashoka network of social entrepreneurs and the NGO Mundo Sustentable, this project has two objectives: to guarantee Bonafont’s PET supplies at stable prices, and to improve the working conditions and income of the waste pickers (pepenadores), who carry out 90% of recycling in Mexicali city under very difficult working and living conditions. The construction of a waste sorting centre near Mexico’s rubbish tips has made it possible to improve the output of the Pepenadores and, as a result, their income. At the same time, the project provides basic services to the families, such as access to health care and education.

SEMILLA: direct to consumer in Mexico

Supported by the Danone Ecosystem Fund and initiated by Danone Mexico in partnership with Ashoka and the NGO Cauce Ciudadano, this programme provides disadvantaged women with training and employment.

Carrera Bonafont:

As a brand that is close to its consumers, Bonafont has been honouring women since 2009 by organising the world’s biggest women’s race.


Every morning, Kosumo leaves for school with his Milkuat. This drink has become his breakfast favourite, because it is easy to hold and enjoy. Kosumo’s mother is happy to see him get a good start to the day!

In Indonesia, Danone adapts its products to the nutritional needs of the populations.




Danone has been present in Indonesia for 15 years.

Fresh Dairy Products, Waters, Baby Nutrition & Medical Nutrition are represented in Indonesia.

danone in indonesia


80% of Indonesian children are deficient in iron and zinc!

To offset this, in 2011 Danone developed and launched Milkuat, a fermented milk fortified with iron and zinc. It is a resounding success: sales are now running at 1,500 metric tons a month!

It has quickly become a part of everyday life for many:

Because it is easy to hold and enjoy,

It appeals to children:

They love its fun packaging, in the shape of a tiger’s head, and its unique taste,

It appeals to mothers:

It not only offsets the children’s iron and zinc deficiencies... it is also affordable!

60% of Indonesian women suffer from malnutrition and some 30% of infant mortality is linked to poor prenatal diets. Sari Husada, Danone’s Baby Nutrition subsidiary in Indonesia, has launched an information campaign to increase awareness of the importance of good nutrition for pregnant women. Working with Indonesia's gynaecological association, the subsidiary developed SGM Bunda, a nutrient-fortified beverage priced under 3,000 rupiah.

SONG has only one child, LI. She wants the very best for him, which is why Wai, her doctor, recommended that she breastfeed.

However SONG is unable to breastfeed, so Wai recommended DUMEX.

China is undergoing massive change.
In city after city and region after region, Danone has become an active player in the agri-food market and one of the leading foreign companies.


Workforce: 10,000

Plants: 18

Danone has been present in China for more than 25 years.

Fresh Dairy Products, Waters, Baby Nutrition & Medical Nutrition are represented in China.


Find out more about Danone in China


danone in china


In 2012, China had:
+ 1,000 billion dollars of GDP
+ 20 million city dwellers
+ 16 million babies

  • +1000 BILLION
    OF GDP
  • +20 MILLION
  • +16 MILLION

City dwellers love Mizone

Mizone (pronounced Maidong) is a vitamin-enriched drink that is low in sugar. Its name means “beat, pulse, life flow” and symbolises the energy of 18- to 35-year old working urban types who are connected to the Web. The brand offers a range of flavours and a very specific bottle shape. But if its distribution hadn’t been adapted to the country and its “nomadic” style of consumption (75% of sales are through small street vendors), it probably never would have made it into the hands of consumers.


China is the largest Baby Food market in the world, with more than 6 billion euros in sales.

67% of Chinese women work and want to give their children what they consider to be the best within the infant formulas. Dumex:

  • • mainly produces infant formula, 95% of which is for the premium segments,
  • • supports new mothers on a daily basis:
    • - the Dumex customer service department answers the questions of 150,000 mothers each month,
    • - the brand’s Weibo account is followed by 110,000 fans

New prospects for Medical Nutrition

Despite only having a limited product range, Nutricia reported very strong growth in 2012. The potential market is gigantic:

Number of Chinese aged over 65:

  • • 123 million in 2012
  • • 170 million in 2020

Today, the flagship product is Nutrison. It is used for tube feeding in 1,800 hospitals. Most doctors are only familiar with intravenous feeding and in 2012 Nutricia trained 10,000 of them in tube feeding.


Like all Russian children, ALEXEI really loves his Prostokvashino. This is Russia’s leading food brand (excluding beverages). It even has its own cartoon!

Since the Danone-Unimilk merger, Russia has become the company’s n°1 market.


Workforce: 13,000

Plants: 24

Danone has been present in Russia for more than 20 years

Fresh Dairy Products, Baby Nutrition & Medical Nutrition are represented in Russia.

Find out more about Danone in Russia


Find out more about Russian market


Since merging with Unimilk, the Company now has one of the largest brand portfolios. Many of these are continuing to grow:

Activia, Danissimo, Actimel, Rastishka (the Russian Danonino).

Prostokvashino, the leading national food brand excluding beverages, is experiencing double-digit growth!

Milk Business Academy : towards improved management of the dairy sector

Danone-Unimilk has opened the first teaching farm in Russia. It trains dairy farmers in sustainable practices and how to make qualitative improvements across the entire Supply Chain. 1,600 local producers will be trained over 3 years.


Nutrilon and Malyutka are the compny’s two flagship products. Each of them caters to specific local requirements:

  • • Mothers seeking a modern brand turn to NUTRILON: they trust Danone’s extensive experience in Western Europe;
  • • Mothers who prefer products that are “100% made in Russia” choose MALYUTKA, longstanding local brand.

Danone, recognised expertise

In october 2012, Nutricia published the first major study on nutrition among Russian children. It highlighted that:

  • • russian children are highly deficient in iron
  • • their mothers have little knowledge of the fundamentals of Baby Nutrition.

Pam couldn’t believe it, but yes, it is possible to have a healthy diet and really enjoy your food.

Oikos, Danone’s Greek yogurt that is high in protein and low in sugar and fat, has an incredibly rich texture.

In the United States, Greek yogurt is a real hit


Workforce: 2,000

Plants: 6

Danone has been present in the United States since 1942

Fresh Dairy Products, Waters & Medical Nutrition are represented in the United States.


danone in the united states


2012NPD, a firm specialising in market surveys and consumer trends, called Greek yogurt the “trend of the decade”.

Between 2010 and 2012, Greek yogurt consumption jumped from 9% to 47% of total yogurt consumption.

In 2012, Dannon invested over 100 million dollars to double its production capacity.

The reasons behind this success?

  • • The fight against obesity, which affects 1 in 3 Americans, has become a national cause
  • The Oikos recipe: lots of protein to satisfy hunger, a low sugar and fat content, and a creamy texture that Americans love
  • • In February 2012, 11 million Americans saw the first yogurt ad ever broadcast during a Superbowl final (amid the traditional ads for crisps and beer)

To follow up Oikos, Dannon has been building a range of products made from Greek yogurt

The Light & Fit Greek launch was Dannon’s most successful in 5 years:

  • • with 776,000 Facebook fans in 6 months, the brand has fast become one of America’s favourites.
  • • In early 2013, it was Activia Greek’s turn to take supermarket fridges by storm.


In his younger years, João lived in great poverty.
He worked hard.

Today, thanks to that hard work, he is part of the middle classes and is proud to be able to provide his family with a home and a balanced diet.

Brazil’s development is exemplary. In the space of 5 years, a new middle class has appeared. A solid base for the company’s growth.


Workforce: 4,500

Plants: 5

Danone has been present in Brazil for 40 years.

Fresh Dairy Products, Waters, Baby Nutrition & Medical Nutrition are represented in Brazil.

Find out more about Danone in Brazil


danone in brazil


Brazil plays a unique role in the company’s development:

  • • the company’s 4 agri-food business lines are growing,
  • • the potential for expansion in each market is still significant.


Growth is driven by two star brands:

  • • Activia: launched in 2004, the brand now makes up a third of Danone’s Fresh Dairy Products sales.
  • • Danoninho: Brazilians have been enjoying this brand for 40 years now. So much so, that many use it as a generic name for yogurt. Its success is partly due to having extensively analysed children’s diets in collaboration with the Brazilian authorities.
    Find out more about the Nutriplanet studies
    Danone then improved its recipe to offset the vitamin A, D and E deficiencies found in Brazilian children.


The Bonafont brand continues to be successful. Launched in 2008, the subsidiary is now setting out to conquer the Home & Office Delivery (HOD) market, which involves delivering large containers of water for the home or office.

At the same time, Bonafont is continuing to promote the health benefits of hydration through water. With the help of recognised scientific experts, Danone is laying the foundations of “the science of hydration”.


With 2.3 million dependent elderly people, Brazil is the Medical Nutrition division’s biggest market outside of Europe. In 2050, this category will represent 30% of the population!

A favourable context for the 2012 launch of:

  • • FORTIFIT, developed for people suffering from sarcopenia or a loss of muscle mass associated with ageing,
  • • SOUVENAID, developed for people suffering from early-stage Alzheimer’s disease.


Along with Argentina, Brazil was one of the pilot countries for developing Baby Nutrition in South America. Since then, several factors explain its success:

  • • Brazilians have become aware of how important nutrition is to a child’s development,
  • • their buying power has increased,
  • • Danone assists young mothers on a day-to-day basis, through the danonebaby.com.br website and through Facebook.

Thanks to the use of biomass (renewable and available in large quantities), 97% of the thermal energy used by the Poços de Caldas plant now comes from renewable energy sources and should enable the factory to avoid the emission of 18,300 tons of CO2 each year.


Abhivira and Fatoumata also have something in common: soon, they will be able to discover the flavours and benefits of Danone products.

The Company plans to focus on India and Africa in the next decade. They have a lot of potential.

Learn more about Danone's presence in Africa


Find out more about Danone in India and Africa


danone in africa


In august 2011

Danone acquired the Wockhardt Group’s “Nutrition” department and entered the world's fastest growing Baby and Medical Nutrition market!

In january 2013

In collaboration with the Narang Group, Danone launched B’lue, a vitamin-enriched beverage aimed at young people - a market with great potential as under-25s make up 50% of the population.

Morocco’s Centrale Laitière: a new phase in a partnership dating back to 1956

In late 2012, Danone increased its stake in Morocco’s Centrale Laitière from 30% to 67%. The deal will have no impact on Danone’s larger strategy, but will give the company more control over two key variables: protecting access to milk and raising quality in the production chain. Already the country’s top Fresh Dairy Products company, Danone plans to continue increasing its Moroccan sales, leveraging its flagship brands Activia, Danette and Danonino as well as Jamila Raibi, a local brand of grenadine flavored fermented milk.


Danone is present in over 40 African countries, primarily in Northern Africa, French-speaking Africa, Egypt, Kenya and South Africa, with Baby Food and Fresh Dairy Products brands.

  • • 22% growth for Baby Nutrition in Africa overall.
  • • +12% increase in sales (by volume) of Fresh Dairy Products in South Africa from 2011.

Morocco’s Centrale Laitière: a new phase in a partnership dating back to 1953

In late 2012, Danone increased its stake in Morocco’s Centrale Laitière from 30% to 67%. The deal will have no impact on Danone’s larger strategy, but will give the company more control over two key variables: protecting access to milk and raising quality in the production chain. Already the country’s top Fresh Dairy Products company, Danone plans to continue increasing its Moroccan sales, leveraging its flagship brands Activia, Danette and Danonino as well as Jamila Raibi, a local brand of grenadine flavored fermented milk.