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A global presence

Danone is operating in more than a 130 countries across the five continents. It does represent a rich array of geographical specificities, cultures, communities and lifestyles to understand in order to create, tailor the best offer as possible.

DANONE IN THE WORLD

The Company's new global equilibrium is the result of our geographical diversification and expansion strategy in the mid-199s 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.


EXPANDING FROM EUROPE TO HIGH-GROWTH MARKETS

1996 : 80% of sales generated in Europe

2015 : 60% of sales generated outside Europe

2015 : TOP 10 COUNTRIES FOR GLOBAL TURNOVER 

Mexico
Mexico

In Latin America, where all four of Danone’s categories are booming, our teams have generated a decade of continuous growth

 

This continuous growth is putting Mexico on the list of our Top 10 biggest markets along with Argentina and Brazil.(in terms of turnover)

Mexico is becoming more and more urban, with 82% of its population expected to live in cities by 2030. In parallel, it has been accompanied by a significant increase in obesity, diabetes and other diseases. Here Danone’s core goal is to offer Mexican consumers alternatives to fast food, sodas, on-the-go eating that have sprung up in the past few decades.

In one example, our leading brand Bonafont develops a strategy that builds on close ties with consumers, from production to product design, packaging and distribution.

Many micro-plants bottle our waters near where they are consumed, and our product range offers fruit-flavored waters as an alternative to sweetened beverages. Packaging ranges from large volumes to single servings, and our distribution model supplements traditional channels with a network of over 3,000 street vendors, staying close to consumers all the way.

Social innovation

In line with Danone’s corporate water policy, we’re committed to helping local communities gain access to safe drinking water in Mexico. Many residents of El Alberto, one of the country’s driest regions, must go long distances to collect water from local springs, which are often polluted. Under the EcoAlberto project, we’ve worked with the Porvenir Foundation and danone.communities to build a treatment plant for local water, which is transported to nearby villages and sold at an affordable price. Some 25,000 people now have access to safe drinking water, and the project has created jobs for the 250 women who distribute it.

Exergue possible: According to the World Health Organization (WHO), some 750 million of the world’s people—or one in nine—do not have access to safe drinking water.

 

Indonesia
Indonesia

Indonesia is Danone’s sixth-largest market

With China, it forms a bridgehead for our growth in the Asia-Pacific region. Thanks to our Aqua and Mizone brands, we occupy the top spot in the Indonesian waters market. But we're leaders in early life nutrition as well, with our SGM and Sari Husada brands holding 40% of the market. Sales for these two categories alone come to over €1 billion, and Aqua's total volume of bottled water is the largest distributed by Danone anywhere in the world.

Over the past decade, economic growth has halved the number of Indonesians living in extreme poverty, but malnutrition, climate change and natural disasters are a threat to food safety and better nutrition for all. Against this backdrop, providing healthy, affordable food and beverages for as many people as possible is a daily challenge, but we’re working to meet it by creating an offer that meets local needs

By pursuing these efforts in close partnership with local associations, health professionals and communities, we’re solidifying Danone’s positions and promoting sustainable growth in Indonesia.

China
China

China is Danone’s third-largest market, and in early 2015 was home to 650 million Internet users.

Today’s Chinese consumers are more connected, more urban, more prosperous—and more demanding. Food safety and quality continue to be their number-one priority, especially for baby food, and they rely heavily on the Internet, not just to buy on line but to read product and brand reviews by other users.

Internet purchases account for 30% of Chinese sales for our Early Life Nutrition Division—more than in any other country. Though China’s economy is slowing overall, growth in the Early Life Nutrition market remained at 10% in 2015, and we expect it to hover around 7% until 2020. Against this backdrop, demand for Aptamil and Nutrilon, Danone’s international brands, has continued to be extremely strong, outpacing the market. And our tie-up with Yashili is laying the groundwork for a solid platform of local infant formula brands.

 

In Waters, Mizone is still the leader in China’s flavored waters market. After years of very strong growth, the brand is now solidifying its positions, closely tracking Chinese growth as it levels off at under 10%.

Meanwhile, the country is grappling with major pollution problems, and the Chinese government is deploying a number of environmental protection measures. Danone has underscored its commitment to this effort by supporting the Eco-Longmen Project, which seeks to restore Longmen County’s Jiaquan watershed by making the local population aware of the need for sustainable farming practices and better management of water resources.

Russia
Russia

Danone is close to celebrating its twenty-fifth anniversary in Russia—one of our biggest markets since our merger with local dairy giant Unimilk, yet still specific.

Russia is the largest country in the world—twice the area of the United States of America—and that makes it the largest country where we do business. A giant in oil and gas, agriculture and industry, it has converted to a market economy and offers enormous potential for at least three of our business lines: fresh dairy products, early life nutrition and more recently medical nutrition.

Russia ranks among the countries where Danone has invested most heavily in recent years, through the acquisition of Unimilk, integrating our expertise and working methods with theirs. We’ve also leveraged our complementary strengths along the entire logistics chain, from ordering to delivery—a unique challenge in such an enormous country.

Our investments are commensurate with the importance of traditional dairy products in the daily diet of Russian families. Essential and naturally wholesome, they are highly reluctant to replacement by modern products, which are viewed almost as unnecessary “sweets.”

But in reality, traditional products are much less convenient, since they must often be prepared or mixed with other ingredients in Russian cuisine, making them less healthful. In 2015, we launched a new range that reconciles tradition with modernity, offering 100% natural, ready-to-use products with no added sugar or dyes, and packaged all in white.

United-States
United-States

The United States is, in 2015, Danone’s leading market.

Americans still eat relatively little yogurt, averaging barely 7 kg per person per year, versus 30 kg or more for Europeans, but the success of Greek yogurt shows that US consumers are willing to change their habits when offered a product that appeals to them.

Dannon, our US subsidiary, saw this opportunity and seized it, knowing that Americans get only 52% of the dairy intake recommended*, and that more than 80% of women get too little calcium. Though US consumers prefer milk and cheese, Dannon is determined to convince them of the nutritional benefits yogurt can offer as part of their daily diet—and its gambit in this enormous agrifood market is now paying off.

*by the US Department of Agriculture and the Department of Health and Human Services

Sales show that Danonn has taken the top spot and continues to widen its lead over competitors. While shelf space for fresh dairy products still averages only five meters in the US market (versus around 15 in Europe), the Greek yogurt phenomenon is expanding it, opening up promising new opportunities.

Another key to growth in the US market is innovation. In only one year, Danonn has revamped its offering in three important segments. In addition to launching Oikos Triple Zero in the Greek segment, we relaunched Danimals brand for children using a new, more nutritious recipe with less sugar and fat and more vitamin D and other nutrients—a move that has pushed the company to the top of the Kids segment in the US. Dannonn has also revitalized the traditional yogurt segment with a super-high-protein version of Light&Fit.

Africa
Africa

BY 2050, AFRICA will account for over half of global demographic growth.

Tailoring our products to local needs and ingredients is especially critical in Africa— a highly idiosyncratic market, from agricultural raw materials to nutritional requirements, and from household budgets to infrastructure development.

The continent’s strong economic, social and demographic momentum, powered by growing domestic markets and the emergence of a sizable middle class, makes it an important region for Danone’s future and for our mission.

Creating a dedicated unit for Africa has enabled us to work on our fundamentals, beginning with developing supply channels and creating or supporting local infrastructures. Our investments focus on the need for production and distribution capacity, and on meeting this need through local channels and practices.

We’ve pursued the same partner-oriented strategy elsewhere in Africa, investing in Centrale Danone in Morocco, Fan Milk in West Africa and Halayeb, a fresh cheese specialist, in Egypt.

Africa: New models for a new market

In Senegal we’re working through the danone.communities fund to support La Laiterie du Berger, a small business that collects milk from local herders. The partnership strengthens the local dairy industry, making life better for some 800 herding families and providing Senegalese consumers with a delicious, nourishing thiakry. This traditional West African recipe combines millet—a local grain—with protein-packed, high-energy yogurt. Here the challenge was to make the product affordable without sacrificing flavor.

By 2025, the 3F Fund will have invested €120 million to help 200,000 African, Asian and Latin American farms convert to sustainable farming practices—simultaneously fighting environmental degradation, raising the farmers’ revenue, and helping businesses develop sustainable supply channels with family farms. Each of these initiatives is just one more milestone in our quest for more responsible, more sustainable economic growth wherever Danone does business.

“We continue to believe that Africa is one of the futures” Emmanuel Faber, Directeur Général