• revolution 1

    For Danone, that means being transparent about where our ingredients come from, how natural they are, and for milk, explaining where and how it was collected to show that a processed product can be natural too.

    In France Blédina, a range of prepared foods and desserts for young children who are ready for a more varied diet, has responded by inviting parents to visit the fields where the fruits and vegetables used in its recipes are grown.

    Across Europe, farmers that partner with us have displayed their quality logos on packaging for unflavored yogurt, and some are opening their doors to consumers, allowing them to visit dairy farms and taste fresh dairy products there and then. And in Spain, certain Danone production sites are hosting educational visits for children.

  • revolution 2

    Harvesting your own vegetables in a store? It’s no longer a fantasy. In Canada, the Netherlands, the United States and Germany, retailers such as Albert Heijn (see photo), Target and Métro are installing real greenhouses and indoor herb gardens where shoppers can serve themselves.

  • revolution 3

    What makes a locavore a locavore? Consuming foods and beverages produced less than 200km from where they live. Choosing fresh, seasonal products grown or made by efficient, sustainable, eco-friendly methods. Preferring short distribution channels, with only one middleman between producer and consumer. So, are you a locavore?

  • revolution 3

    Worldwide, land under organic cultivation-- certified and in conversion-- has more than quadrupled in just 15 years, and the number of organic farms, now nearly 2.3 million, is nine times higher. North America and Europe consume 90% of the world’s organic products: in the US, consumption of organic products quintupled between 2001 and 2014, and dairy products account for 15% of organic sales. In France, demand for organic products rose 20% in 2016-- well in excess of available supply.

    Source: Agence Bio, France’s agency for organic farming, based on data from IFOAM, the International Foundation for Organic Agriculture

  • revolution 3

    Much of the land in Rotterdam, a city of over 1.5 million, was reclaimed from the water, and now its harbor will be home to the world’s first floating farm: over 1,200 sq m of green space that will grow animal feed and house 40 cows. Milk from the innovative facility, estimated at 1,000 liters a day, will be used in local production. It's a demonstration of circular economy, where cycles of nutrients, energy and water will be closed as much as possible, to reduce waste.

  • revolution 3

    A Lufa Farms greenhouse, installed on the 2,880 sq m roof of a commercial building in Montreal, feeds some 2,000 city residents and produces 70 metric tons of produce annually- -and the company has launched second urban greenhouse in nearby Laval. In the US, Detroit now counts 1,500 urban farms and gardens, and 16,000 people are working to reclaim hundreds of hectares to grow food in the heart of the city. And since 2011, a US company has set up over 15,000 sq m of greenhouse space on rooftops in New York City and Chicago.

  • revolution 3

    Working through Danone brands such as evian, Neocate, Danonino and Aptamil, we’ve developed apps and services that meet the needs of targeted groups of parents and patients, offering water delivery to your home to help with hydration, educational games that make it fun for children to learn about a balanced diet, and platforms that bring parents, patients and health professionals together for information, idea-sharing and advice on medical nutrition. With today’s smartphones, consumers can find the facts they need and access services that help them make informed decisions.

  • revolution 3

    Studies estimate that we will need to produce 50% more protein-- a promising outlook for vegetable proteins, which are less resource-intensive than meat. Now, work by dozens of researchers at a California-based start-up have produced a perfect “meatless hamburger” that not only delivers the same texture, juices and flavor, but also cooks just like beef. And it’s good for the environment: each quarter-pound of the so-called “Impossible Burger” saves enough water for a ten-minute shower and eliminates the greenhouse gas emissions of a 29-km drive.

  • revolution 3

    With smartphones increasingly common and GPS becoming more accurate, home meal delivery is growing fast: UK-based Deliveroo and its German counterpart Foodora are scrambling to catch up with US rival DoorDash.
    By 2020, the home meal delivery market is expected to reach $210 billion. While chefs and caterers such as PopChef and FoodChéri serve up readymade meals, MoiChef, Les Commis and other services provide ingredient kits that enable users to prepare their own gourmet meals.

  • revolution 3

    1- Cut the cost of waste and optimize use of resources by rethinking every step in the supply chain.
    2- Redistribute unsold products as soon as possible, following the example of Les 2 Vaches, our organic brand in France, which donates surplus products to charity or re-uses them in recipes.
    3- Work with our whole ecosystem of suppliers, distributors and carriers to develop new solutions such as adjusting order volumes or discounting inventory as it nears its expiration date. New packaging can also help change consumption habits, for example by offering individual portions as well as family-size products, or selling yogurt in fourand twelve-packs.

    We’re also continuing research that will enable us to make packaging from recycled and/or renewable materials and reduce its overall weight. Each link in the chain can help us meet our 2030 goal by reducing product waste, conserving resources and cutting our carbon emissions.

  • revolution 3

    Can you make a great meal from discarded ingredients that would otherwise end up in the trash? Chef Dan Barber thinks you can, and that’s exactly what he serves at Blue Hill at Stone Barns, his restaurant in upstate New York, and at his 2017 pop-up restaurant at Selfridges in London: Menus include fried skate wing cartilage with smoked whitefish head tartar sauce, salad fresh from the garbage truck, kale stem stew and charred pineapple core for dessert. Rave reviews guaranteed.

    Photo: Philosopher and chef Dan Barber, creator of both restaurants, is working “to change food and farming forever.”

  • revolution 3

    Non-standard fruits and vegetables, perhaps too big, too small or too misshapen to make the grade, are in vogue, prominently displayed by major retailers and sold by dedicated “ugly” produce retailers and online distribution platforms, such as “gueules cassées”. From Denmark to Western Europe to the US, sellers are touting ugly fruits and vegetables: spotted, slightly damaged, and otherwise out of grade, they’re sold at a discount or made into chips, fruit jellies and other 100% natural treats.

  • revolution 3

    Because inventory is hard to gauge, sellers often find themselves with a surplus of fresh foods that are likely to go bad--fruits and vegetables, prepared foods, fresh fish and more. These leftovers are too good to throw away, so stores and restaurants have begun selling them at discount prices on line and giving them to non-profits for distribution to those in need. Creative solutions for preventing food waste are already available from apps such as OptiMiam, Zéro-Gâchis, What The Food (for students), Partage Ton Frigo, Youmiam and Planet Ocean.

    Photo: OptiMiam helps leftovers from food vendors reach those in need.

  • Aqua 1

    evian “Baby Bay” campaign makes waves

    “Baby Bay” is the mythical surf spot where evian chose to set its 2016 advertising campaign. The campaign, visible across digital and traditional platforms, included a mobile app that invited users to live the 360° baby surf experience. The ad has clocked more than 80 million views.

  • Aqua 2

    Aquadrinks grows in Germany and beyond

    Sales of Juicy, the strategically important range of Volvic aquadrinks surged in our key markets, with double-digit growth in Germany. Juicy's “Small Victories” campaign was well received and responsible for driving awareness and sales. We are also successfully implementing our vision of reducing sugar in all of our aquadrinks, and on track to achieve our full sugar reduction target before 2020.

  • Aqua 3

    Badoit takes a famous French chef on a regional gastronomic tour in France

    Have you ever acted like a "wet chicken?" The French expression (meaning to be scared) was one of the several that inspired dishes prepared by Michelin-starred chef Thierry Marx during the Badoit Thierry Marx Tour in 2016, celebrating French regional cuisine. The chef and long-time brand ambassador returns this year as part of Badoit’s Joyfood movement.

  • Danonino 1

    Oikos Triple Zero helps take Danone to the top

    In the United States, where health is a driver of change in eating habits, consumption of some types of fresh dairy products is growing. This is especially true for the Oikos range, which has helped to vault Dannon to the top of the US yogurt market. Oikos Triple Zero, the category’s best-selling innovation in recent years, has strengthened Danone’s position even further, with sales growth two-fold like-for- like compared with 2015. Oikos Triple Zero has achieved this strong growth by delivering a nutrient-dense product and focusing on expanding into protein snack moments of consumption.

  • Danonino 2

    “Stay Strong” encourages Actimel campaign

    Actimel relaunched in April 2016 with a global campaign and new brand platform called “Stay Strong”. The global integrated campaign on TV, outdoor, PR, social and experiential media encourages consumers to face their daily challenges with positive resilience and to stay strong. In the U.K., sales grew by several percentage points since last year, consumer penetration reached the highest level in the past 3 years and brand affinity rose 8 percentage points.

  • Danonino 3

    Changing perceptions of yogurt in Russia

    In Russia, growth in the yogurt category had been constrained by the perception of yogurts as indulgent and artificial compared to traditional plain Russian dairy products. The Activia and Danone brands adopted an artisanal-style packaging to reinforce the sense of naturalness, refined simplicity, and transparency regarding the process and ingredients. The results were impressive, with sales of Activia’s spoonable yogurt growing more than 20% and Danone up more than 50% in 2016.

  • Fortimel 1

    A tasty option for kids with milk allergies

    Neocate Junior was introduced to Europe in 2016. The product features improved taste and is intended for the dietary management of children aged over one year suffering from cow’s milk allergy and multiple food allergies.

  • Fortimel 2

    Partnership to restore the pleasure of eating

    Nutricia is partnering with the Alicia Foundation to develop products that taste better, and help patients rediscover the pleasures of eating. For one Catalonian hospital, the Foundation has developed meals with all the original flavors of paella, a local specialty, which can be consumed by patients suffering from swallowing difficulties (dysphagia) as it is prepared using Nutilis, a thickening product from Nutricia.

  • Fortimel 3

    Mobile app to optimize nutritional care

    Nutricia launched the Nutricalculator app in both the App Store and Google Play Store. Developed in partnership with intensivists and researchers from the VU University Medical Center in the Netherlands, the app gives nurses, dieticians and doctors in intensive care units a fast and easy means of calculating a patient’s energy and protein requirements at the bedside.

  • Aptamil 1

    Fighting obesity with awareness in the UK

    In October 2016, Danone Nutricia ELN helped launch the Early Years Nutrition (EYN) Partnership to fight childhood obesity in the United Kingdom. Working in partnership with the Pre-school Learning Alliance and the British Nutrition Foundation, the business line set up a network of nutrition professionals to make parents and daycare providers more aware of nutrition problems affecting young children.

  • Aptamil 2

    Indonesian campaign aims to grow great babies

    In Indonesia, Nutricia’s Bebelac launched its “Grow Them Great” campaign for mothers of babies over one year old. Bebelac builds on 100 years of experience to care for babies’ delicate stomachs and help them grow strong. The campaign successfully turned around sales, with double-digit growth in 2016.

  • Aptamil 3

    Malyutka campaign showcases ELN’s high standards

    In 2016, Malyutka in Russia launched a campaign to reinforce the brand perceptions of quality and trust. Central to the campaign was an online TV travel show, which highlighted the standard of Danone ELN’s nutrition, production, quality and ingredients around the world. Malyutka closed the gap with a main competitor and reached 250 bps in infant formula volume market share.

  • Phosphatine 1

    Egyptian dairy acquisition

    Danone acquired Egyptian group Halayeb for dairy products. Halayeb specializes in cheese, one of the most important and dynamic segments in Egypt's dairy sector.

  • Phosphatine 2

    Stepping up in Western Africa

    The company turned its minority interest in Fan Milk International to a majority shareholding, increasing its presence in Ghana, Nigeria and French-speaking Africa.

  • Phosphatine 3

    Yogurt drinks lead growth

    There was positive growth in our drinks portfolio, with all yogurt drinks up 12.6%, led by Assiri in Morocco, with +17.5%.

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Around us

2016 reviewed by
Emmanuel Faber, CEO

2016 success
stories

Our brands
around
the world

WhiteWave

Toward 2030

2016 in figures

2016 Publications

Bringing health through food
to as many people as possible

Welcome

to the alimentation revolution

Around
us

PLan d'action objectif zero net carbone

The alimentation revolution for a sustainable planet

With consumers paying more and more attention to what’s on their plate, food has become a focal point. People want to go back to food and beverages that are synonymous with well-being, with trust in the quality of what they’re eating, and where and how it was made.

People everywhere are asking questions about the food of tomorrow, and in this chapter we’ll introduce you to some of the thought-leaders and trend-setters leading the way. Each in their own sphere has accepted a challenge--not to change the world, but to be a part of the change. That’s what we’re trying to do in our own way at Danone harnessing the entrepreneurial spirit that goes back to our beginnings.

Even as we step up our own efforts, working for and with local communities towards healthier, more sustainable eating and drinking, we’re watching these new expectations and innovations closely and encouraging them. They’re even inspiring us to form new partnerships.

These next few pages present a snapshot of the alimentation revolution: from technological solutions to new methods for farming, the examples are diverse and only the beginning of a long adventure.

“Promoting the adoption of
healthier and more
sustainable food, from the
way it’s produced to
how it’s enjoyed, takes us
a long way toward improving
the lives and living standards
for millions of people around us.“

Bertrand Austruy
Executive Vice President, Human Resources and General Secretary

4 young
entrepreneurs
at the forefront
of the alimentation
revolution, each
in their own way

“Reinventing
the food system”

LUCIE BASCH,
Founder, TOO GOOD TO GO

We just wanted to stop all the waste. It doesn’t make sense for storeowners to throw food away when there are people begging for food and picking through supermarket garbage. I was looking for a way to connect businesses and consumers. We developed a mobile app that can reach new customers at closing time no matter where they are–and Too Good to Go was born. It’s a small contribution to reducing waste in a society with an over-abundance of food. I think the food system should decentralize completely, restore vitality and meaning to local production, and start teaching people about seasonal eating in early childhood. I also believe in going organic: for the planet, for consumers–for everyone, really. And households should make healthy eating a priority. Paying a little more for healthy foods and beverages is better than taking medicine to counteract the effects of the pesticides we’ve ingested all our lives.

Listen to Meghan Carreau

“Impacting
the food system
through education”

MEGHAN CARREAU,
CEO/CO-FOUNDER TUCKRBOX

As a child, my parents sent me off to school each day with the well-meaning, but ubiquitously unbalanced American lunch of peanut butter and jelly sandwiches, a sugary juice box, and if I was really lucky, some chips. Over time, those foods took a toll on my body and both my sister and I were diagnosed with celiac disease (gluten intolerance). It really changed the way I thought about food and the whole food system. TuckrBox is on a mission to create a healthier generation through food and technology. We are a subscription-based meal delivery service and a food educational app for kids. Children are able to build their weekly lunches on our app, which is a fun place to engage and play while learning about healthy food. Our fresh, delicious, inventive and nutritious meals are then delivered weekly. A portion of profits is dedicated to food and farm education in low-access areas. Influencing and educating children about where good food comes from and how to feed yourself well while they are young can create a lasting impact.

“If you want healthy,
sustainable foods
and beverages,
physics is better
than chemistry”

RAPHAEL HAUMONT,
physical chemistry researcher,
holder of the first
Cuisine of the Future
Chair at the French
Center of Culinary Innovation, France

I hope that disruptive innovation will make the cuisine of 2030 not only healthier and more responsible, but also even tastier. It will be healthier because it’s more product-centered: today we can extract flavors by applying physics and using fewer chemicals. We’re working with leading French chef Thierry Marx to develop sugar-free pastry, cream-free ganache and other tasty treats. More responsible, because in the way you cook it’s absolutely essential to incorporate the concept of sustainability and a concern for the planet, which will be shared by nearly 9 billion people in 2030. And tastier, because food is primarily about sharing emotion and pleasure. Many of us are already realizing that we need to go back to basics: organic, seasonal products, short-channel distribution and so on. Everyone has a part to play. Local initiatives need to join forces, with genuine community spirit-- and that means including consumers as well as researchers and big food companies.

“The future
of food is in the
people’s hands”

JAUME BIARNES,
Chef cuisinier
à la Fondation Alicia,
Espagne

The future of food will be what people want it to be. Consumers need to realize the power they have to drive the food industry: it is their day-to- day decisions in the supermarkets that shape the future of food. In order to fight against health issues (such as obesity, diabetes), unsustainable food production or food waste, it is crucial to encourage people to cook at home. At the Alicia Foundation, we have a program dedicated to teaching kids and youngsters aged 3 to 18 how to cook. More than 200,000 children have participated in the program in the last 7 years. We don’t particularly promote healthy eating. We just want them to realize that cooking, and eating what you’ve cooked, is highly pleasurable. Then, through developing their palate and tastes, they will very naturally be looking for healthier and more sustainable foods.

2016
reviewed by
Emmanuel
Faber, CEO

2016
success
stories

Our brands
around
the world

Our brands
around
the world

It's our revolution too

Danone’s brands are the means by which we engage in the alimentation revolution. Their legitimacy is grounded in their universal nutritional benefits, from hydration to a balanced diet. Committed to our mission, our four business lines pay attention to all consumers, including infants, mothers-to- be, and the elderly.

In addition to their indisputable nutritional value, high quality and added enjoyment, our brands have a responsibility to offer food and beverages that benefit health, communities and the planet, and in doing so meet the consumers’ expectations.

In these next pages we showcase five Danone brands, representing our Divisions and the regions where we do business. Each has been designated a Manifesto Brand, with a clearly defined purpose and a roadmap.

“Our ambition is to produce healthy food that is affordable, creates economic and social value, and nurtures natural ecosystems through sustainable agriculture.”

Lorna Davis,
Executive Vice President, Chief Manifesto Catalyst and CEO, Danone North America (after closing of the upcoming WhiteWave transaction)

AQUA

AQUA

Providing goodness,
and hydration

Aqua’s aim is summed up as “spreading goodness to enable Indonesians for a better Indonesia.” Its deep roots in Indonesian culture and society are one of its greatest strengths, and a key to understanding its status as a Manifesto Brand.

With two-thirds of the population lacking access to safe drinking water, Aqua understood the imperative. Outpacing other Indonesian brands to respond to the challenge, Aqua has become the number one natural bottled water, and also gained recognition as one of the country’s “Most Meaningful Brands.”

Addressing the health challenge of hydration is one of its main preoccupations. Aqua committed early on to providing access to affordable potable water in large formats. The Aqua Gallon was among the first of its kind to be distributed in Indonesia, and still represents a large percentage of sales.


Aqua is pushing for a healthy hydration revolution, as one child in four does not drink enough water.

Aqua has stepped up its education and brand activation campaigns for young people. To this end, it released a communication campaign with a light-hearted tone highlighting the rewards and pitfalls of not being well hydrated (in this case temporary loss of focus). For younger children it launched small bottles of mineral water in the shapes of Disney characters, which has proven a fun and effective way to encourage them to drink water.

Another one of Aqua’s main priorities is the environment. It has developed a tool to reduce water consumption at the factory, while also aiming to return water safely to the environment, and protect the watersheds in partnership with the communities where it operates.

In parallel, plastic waste management remains a challenge in Indonesia. Aqua is working with local partners to organize collection and recovery of packaging in Indonesia, with the goal of collecting more plastic than it generates.

“Our brands need to take a position on the issues that matter to their consumers, be it environmental protection, health, or gender equality. Our consistency in our positioning over the long-term is what builds trust and gives us legitimacy.”

Francisco Camacho,
Executive Vice President, Growth and Innovation Officer and Waters

DANONINO

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DANONINO

Nurturing kids'
autonomy

It takes more than love to become a Manifesto Brand. For over 40 years Danonino–formerly Petit Gervais in France–has grown country by country, building relationships of trust based on its close connection with parents and young children. The nutritional qualities of its products and their fun, educational positioning have cemented its popularity and reputation.

Danonino has always supported parents, offering children nutritious foods and helping them develop healthy eating habits.

Nutrition is also part of Danonino’s DNA. Between 2014 and today added sugar content has decreased by 24% on average, and total sugar content by 14%. The brand is now targeting new, even more ambitious sugar thresholds by 2020.

Danonino’s pouch, launched in Europe in 2016, is aligned with our new nutritional standards and among the best in class in terms of sugar content. Portable and with easy-to-handle packaging, the product can be consumed for eight hours once out of the refrigerator, encouraging children to be autonomous.

Danonino is also concerned with the world we live in today. The brand has committed to significantly increase the use of recycled materials and renewable plastic in packaging by the year 2020.

“Yogurts are an outstanding example of the food revolution: they’re natural, fresh, healthy and local. Through the incredibly transforming power of live ferments, yoghurts pack a high concentration of essential nutrients, and are also one of the least-processed commercially made products.”

Gustavo Valle,
Executive Vice President, Resources Efficiency and Dairy

FORTIMEL

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FORTIMEL

Patient insights
and innovations

For Fortimel, the alimentation revolution begins with a radical shift in perspective: putting patients, not products, at the heart of its mission. Fortimel is a medical food used as an oral nutritional supplement to fight disease related undernourishment, for instance in patients suffering from cancer. Its recent transformation marks the transition beyond supplying a medical nutrition product to taking a holistic approach to patient care and recovery.

The approach is particularly relevant at a time when the incidence of chronic disease is increasing worldwide. The stakes are even higher when we consider rising healthcare costs and the burden borne by caregivers.

The role of nutrition in patient care and recovery has been proven, but is still underestimated, not only by patients and their families, but also by healthcare professionals.

Nutricia’s ambition is to establish medical nutrition as an integral part of healthcare–an ambition carried by its brands such as Fortimel.

Patient insights are at the heart of the Manifesto Brand approach to innovation for better patient care. When research showed that volume was a bareer for patients to consume full portions of Fortimel products, the brand pioneered a new formulation enabling compact, smaller volume products. These deliver the same nutritional density while supporting patient compliance with their prescribed nutritional regimen. As an added advantage, the new format delivered environmental benefits through reduced plastic packaging.

“In the 21st century, we will see a shift from a majority of communicable diseases to a majority of nutrition and diet-related diseases, making nutrition much more critical to our health and well-being than in the past.”

Flemming Morgan,
Executive Vice President, Medical Nutrition Division until mid-2017

APTAMIL

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APTAMIL

Focusing on infant immunity
for an stronger future

Aptamil believes every baby is entitled to the best start in life, and the healthiest future. Aptamil supports exclusive breastfeeding for the first six months of age and continued breastfeeding up to two years and beyond, combined with the safe introduction of appropriate complementary foods(1). In situations when mothers may be unable or unwilling to breastfeed exclusively, Aptamil offers support and information to help them make the best choice for the baby, based on the baby’s age and condition.

Present in 39 countries, the brand has developed a reputation as a “brand of first choice” among parents and healthcare professionals. Aptamil’s portfolio of products encompasses a full range, from expert care for the extremely vulnerable (e.g., preterm infants), to nutritious formulas with scientifically proven health benefits for young children.

Ensuring a strong immune system in early life can help build a baby’s resilience against future adult health issues. To this end, Aptamil has a strong pipeline of innovations in development to continue to lead the category on immune fitness. This pipeline is based on best-in-class science and expertise, such as a hypo-allergenic formula with prebiotics for infants at risk of allergy. The brand is also committed to sustainability, taking an approach to milk supply and packaging that is designed to minimize its impact on the environment. In more than a few ways, Aptamil is looking out for future generations.

(1)“Danone’s Commitment to Health and Nutrition in the First 1,000 Days,” July 19, 2016, available on danone.com

“Early life nutrition is a cornerstone of the food revolution. It’s the basis, the starting point in helping children get off to a good start in life and build their health capital for the future.”

Bridgette Heller,
Executive Vice President Early Life Nutrition

PHOSPHATINE

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PHOSPHATINE

Ending the circle
of anemia

The rise of Phosphatine as a Manifesto Brand offers a key to breaking the vicious cycle of anemia in Africa. The challenge is sizeable: 71% of African children under five are anemic, with half of these cases caused by iron deficiency. The impact on a child’s physical and cognitive development is devastating, and though solutions do exist, affected groups are often unaware of them or unable to afford them.

Phosphatine is well positioned to be a part of the solution. The brand’s instant cereals are fortified with enough iron to meet 70% of a child’s daily requirements. They are adapted to local eating habits, and are among the least expensive cereals in the market.

But to have a real impact, Phosphatine needs to move into high gear. The goal is to trigger a virtuous cycle by cutting costs and with them prices, in order to expand the brand’s markets. This is the strategy of a Manifesto Brand that has clearly identified its mission: from public health challenges, to consumer expectations and its own path to growth.

At the same time, Phosphatine is stepping up its nutrition information programs, working with health professionals to reach local communities.

“People want food that makes sense for their health and for the planet. They feel a need to reconnect with traditions, history, and their community. With Phosphatine, we are turning cereals, a staple part of local diets across Africa, into a high-quality food delivering health.”

Pierre-André Térisse,
Executive Vice President, Access and Africa

Argentina

Ana Guerello,
Nature and Social Innovation Project Manager

Cartoneros
Developing
professional recyclers

“In Argentina, the Cartoneros program aims to support and consolidate the development of the country’s recycling industry while improving working and living conditions for waste-pickers.

The country’s recycling industry is still largely unstructured. Thousands of waste-pickers work under difficult conditions to collect recyclable materials, which they sell at very low prices, often without society noticing their contribution. The work is hard and tedious, and most waste-pickers struggle to make enough to live on.

Under the Danone Ecosystem Fund umbrella and led by Aguas Danone Argentina (ADA) and its partner Avina, Cartoneros was co-created and supported by a wide network of public and private partners. Thanks to the program’s efforts, 1,500 workers now have professional status, paying taxes and benefitting from social security. They are empowered, have better infrastructure and equipment, and access to training sessions.

One of the Cartoneros program’s key objectives is to work towards a closed-loop recycling system, transforming waste (namely PET, the plastic our bottles are made of) into a valuable resource. We now recycle around 80 tons of PET each month, 35% of ADA’s requirement of socially responsible rPET – our mid-term aim is to reach 100%.”

Indonesia

Karyanto Wibowo,
Head of Sustainable Development, Danone Indonesia

ORISA
Going organic
to improve
health and economy

“In Indonesia, Danone is supporting the launch of a new brand of organic rice, Orisa. The project has been a success for the farmers and the community, preventing water contamination, bolstering local incomes, and promoting healthy lifestyles.

Orisa came into being when a local university found that the farming methods of rice-growers upstream of our Cianjur bottling plant may pose long-term risks to our water resources. To reduce this possibility, Danone helped farmers shift to organic, more sustainable, farming methods.

Yet even with farmers eager to adopt organic practices, an important step was missing: they needed a way to bring their new rice to market. To solve this problem we brought our local Aqua Home Service network into the equation. Our Aqua Ladies were already meeting basic daily needs by distributing Aqua brand water, rice and cooking gas directly to consumers. Adding organic rice to their offer gave them a chance to boost their own income while promoting healthier food and lifestyles in their community.

In the countryside around the Cianjur plant, nearly 180 acres have been converted to organic farming, while 451 farmers grow Orisa rice, which they sell through a network of 345 Aqua Home Service vendors in three Indonesian cities. Given the promising results, we are working to replicate the project’s success.”

USA

Vincent Crasnier,
PMO Dannon Pledge Implementation

DANNON PLEDGE
A commitment
to sustainable agriculture
in the U.S.

“In April 2016 we announced an unprecedented, multi-year commitment to our U.S. consumers, suppliers, and the environment–the Dannon* pledge on sustainable agriculture, naturality and transparency. The pledge was made possible thanks to very close relationships cultivated with farmers and partners over the years. As part of the pledge, working with dairy farmers and other partners (such as Green America and the Validus certification) we are pursuing strategies for water and soil management through agronomic science, biodiversity, reduced carbon emissions and energy use, as well as ensuring the well-being of cows that supply our milk.

We encourage farming practices that improve soil health, such as crop rotation. Animal welfare is key to sustainable agriculture, which is why we require our farming partners to obtain third-party certification for their practices. More than 90% of our milk now comes from farms that are Validus-certified, attesting to animal care and food safety standards. We have also decided to use fewer, more natural, nonsynthetic ingredients such as non-GMO sugars and starches. Products from our three flagship brands (Dannon, Oikos and Danimals) will evolve toward the use of fewer ingredients, which are more natural, not synthetic and non-GMO (including feed).

These three brands, representing around half of Dannon’s sales, are expected to be certified by the end of 2018. In 2017, we have started working with feed suppliers to plant non-GMO feed, and we expect to convert 65,000 acres of farmland to non-GMO crops by late 2018. Our development of non-GMO products is about providing consumers with greater choice. Our pledge is ambitious, yet it’s also timely and important. We want to incorporate long-term sustainability into our way of thinking about and producing food, at a time when more and more U.S. consumers are questioning the sourcing and production of their food along the chain.”

*Dannon: Danone’s US subsidiary

Russia

Ksenia Maslennikova,
Project Leader
&
Natalia Gelstein,
Moscow Danone City Unit Director

Moscow City Unit
Understanding cities
and thier people

“The Danone City Unit pilot program in Moscow was developed in response to an essential question: how could we grow our business in large cities where more and more people live, and income and innovation are concentrated?

The task for the team was to become better acquainted with their city, listening to residents and their needs, recognizing upcoming trends, and identifying a ‘city purpose’ in line with our company’s mission. By focusing our attention on the city itself, we’re finding new and innovative ways to market, distribute and sell our products.

In Moscow, our ambition is to become a vital player and partner in the city, making lives easier for Muscovites by understanding their nutritional needs and offering solutions. The Moscow City Unit team has focused on the most relevant community for our business, namely local mothers. For Moscow moms it can be hard to find reliable sources of information on subjects such as healthy child nutritional habits.

The team is developing a plan to engage moms and, with their help, build a community. One of the projects is Baby Stores, which has optimized its point-of-sale execution leading to growth for our Tëma brand. The secret to the project’s success has been the collaboration between Danone’s four Moscow divisions to develop transversal responses to identified needs.

Growth among these city divisions is three times faster than for Danone in Russia overall.”

Nigeria

Edouard Spicher,
Fan Milk International

Fan Milk
Tapping hidden opportunities
in Nigeria

“Fan Milk in West Africa has 50 years’ experience selling fresh and frozen dairy and juice products. But we do it our way: consumers don’t come to us, we go to them. Around 80% of sales are made directly in the street by vendors with bicycles or pushcarts equipped with chilled boxes.

Present in Ghana, Nigeria, Togo, Benin, Burkina Faso and the Ivory Coast, our model has a strong track record, particularly in Ghana, which generated over half of our 2016 sales. The experience in Nigeria, however, was different. By early 2015, we had to face reality: the model wasn’t working. We looked at our entire value chain, from plant to vendors, identifying gaps and steps we could take to revive our business.

We optimized our production facilities, we reworked the supply plan for our distribution centers, we also revisited the maintenance cycle for our distribution trucks and streamlined delivery routes to ensure better customer service every day. Finally, we had to correct imbalances in our network and our equipment. In 2016, we recruited new agents, nearly tripling their number from 450 to 1,200, and we doubled our distribution equipment. Thanks to the engagement and perseverance of our team, the effort paid off: we reported double digit growth in Nigeria in 2016.

We’re now exploring many other ways to improve our operational efficiencyso that we can take advantage of all of Nigeria’s hidden opportunities.”

Europe

Eric Soubeiran,
European Milk Sourcing Director

Milk sourcing
Developing relationships of trust
with dairy farmers

“When it comes to the milk used in our products, assuring quality and traceability is essential. To do so, we have to cultivate stable, trusting relationships with our dairy farmers. In Europe, our Fresh Dairy Products division chooses to work directly with farmers, reflecting our commitment to building strong, meaningful ties to local communities. In fact to keep Danone production plants supplied, our teams work with over 4,000 farmers in six European countries, sometimes with the same family over several generations.

To create enduring relationships with our partners, we’ve made the reduction of price volatility a core tenet of trust. Over the last three years we’ve developed a new model for working together that gives farms more economic stability, keeps the dairy industry competitive over the long term, and meets our environmental and social commitments. And because production costs are factored into our purchase price, farmers have the security they need to make investments, while Danone is assured of the quality and reliability we need. Almost 40% of our dairy volumes in Europe are covered by this model.

This continued dialog with our farmers also gives us the opportunity to address core issues affecting the European dairy industry as a whole. Each of our collection areas has adopted a strategic issue, addressing it with a specific project. In 2016, our Spanish subsidiary launched a project with Compassion in World Farming (CIWF), an international organization dedicated to improving animal welfare. In partnership with CIWF, Danone Spain has revamped standards and audits, setting a high bar for the humane treatment of dairy animals.

In Belgium, Danone employees are working to limit quantities of farm effluent by developing innovative technologies that treat nitrogen compounds, reuse liquid manure, and more.

In Germany, where consumers are concerned about GMOs and deforestation, we’re encouraging local animal feed solutions.

In France, which accounts for a large share of the milk we collect in Europe, we’ve launched a pilot project designed to shrink our carbon footprint. This new effort is part of the French Dairy Interbranch Organization’s low-carbon farm initiative, which promotes better farming practices and other measures to help French dairy farms achieve a 20% reduction in greenhouse gas emissions per liter of milk produced by 2025. The joint project was launched in 2016, and in March 2017 an agreement was signed at the International Agricultural Show in Paris.

And in Romania, Danone is supporting subsistence farmers through Chance for All, a Danone Ecosystem Fund project designed to help them get their operations on a more professional, economically sustainable footing, and meet the highest European quality standards. As a result, more than 150 Romanian farm families are now supplying milk to our plant in Bucharest, and preparations for the next stage of the project are already underway.

Though we’ve launched these pilot projects at country level, we plan to replicate them on a broader scale. We’ll build on their successes to map out our future milk production footprint, harmonize best practices in Europe, and cement Danone’s relationship with the dairy industry.”

WhiteWave

Danone x
WhiteWave

Watch Emmanuel Faber

Together as one, Danone and WhiteWave aim to inspire better food and beverage choices. By developing a world-leading dairy and plant-based portfolio, we are helping consumers to select from a wider range of better-for-you and great-tasting products. It’s all part of the alimentation revolution – changing the way the world eats for the health of people and the planet.

Danone x
WhiteWave

A greater range of choice, for the greater good

When it comes to what and how we eat and drink, a growing number of us are making a conscious choice. We’re paying more attention to what we eat and drink, and the impact this has for our health, the environment, and the communities around us. Specifically demand is growing for more nourishing, natural and sustainable products, that can be consumed at different moments of the day.

It’s why Danone’s acquisition of WhiteWave makes perfect sense. It brings together two leaders in food and beverages, with complementary portfolios in some of the fastest-growing, health-focused categories. In addition to dairy, waters, early life nutrition, and medical nutrition, our combined offer now includes premium organic and fresh foods, non-GMO, plant-based products and coffee creamers.

With this diverse portfolio, we can help satisfy consumers’ desires for a wider choice of products. This includes meeting the needs of the growing number of ‘flexitarians’, who wish to diversify their protein sources and see plant-based products as part of their diets. And at the same time, better cater to consumers with dietary constraints.

Danone x
WhiteWave

Danone Sales
> $6bn in North America


Danone Wave
top 15 food and bev.
in the U.S.



Alpro
#1 plant-based food
and bev. in Europe

Growing our business, in North America and Europe

Combining these two leaders gives us greater scale, expertise, geographical reach, and know-how, on our journey to strong, sustainable and profitable growth by 2020.

Our North American business will double, to over $6 billion. In the United States, our new entity DanoneWave will become one of the top 15 food and beverage companies, and No.1 in refrigerated dairy (excluding cheese).

The former WhiteWave businesses in Europe (Alpro), LatAm and China will join forces with Danone Dairy as the key pillar of our new Plant-Based Business unit, with the aim to expand and grow the plant-based category around the world.

Danone’s important geographic presence in Europe will accelerate Alpro’s continent-wide growth, and help bring Alpro’s plant-based products closer to consumers.

Furthermore, we can draw on each other’s know-how in dairy fermentation and plant-based expertise. Stepping up our innovation abilities will lead to the creation of more products that meet evolving consumer trends.

Danone x
WhiteWave

The alimentation revolution in action

It’s not just our business cultures and product ranges that are complementary. Danone and WhiteWave also share the same vision: to inspire healthier eating and drinking choices while promoting a model of sustainable growth that creates economic and social value, and limiting our environmental impact.

It’s what we call the alimentation revolution. We share an understanding that ‘alimentation’ means more than the simple act of eating, but extends to other important dimensions of food, such as nutrition, taste, and social and cultural aspects. Our brands are driving the alimentation revolution forward by remaining closely focused on the needs of local consumers and communities, and by providing solutions to the world’s health and sustainability challenges.

Moreover, as part of the acquisition, DanoneWave will become the biggest public benefit corporation in the U.S. This status is recognition that our mission goes beyond shareholder interests to include environmental and social factors. For example, we are committed to promoting sustainable farming, conserving water, reducing waste, encouraging circular economy, decreasing our carbon footprint, and offering a diverse range of products.

“Our acquisition of WhiteWave
is strong proof of our
commitment to the
alimentation revolution.”

Emmanuel Faber
CEO

Toward
2030

Toward
2030

“There is only one earth.
We only live once.”

ANTOINE RIBOUD,
Marseille Speech, 1972

These words, spoken by Antoine Riboud 45 years ago in a seminal speech to French business leaders in Marseille, would make Danone unique among French multinationals. His message was visionary, and its penetrating insights still resonate today. Consider another excerpt: “This [economic] growth causes harm, both individual and collective. It has often sacrificed the environment and working conditions to economic efficiency. Which is why it is challenged and sometimes even rejected as the ultimate purpose of the industrial age. [...] Continuing to ignore this – continuing to trust to the laws of fate – will lead us inevitably to revolution.”

Today that revolution is well underway, led by a growing number who realize that they have a responsibility to change our food system. It also has strong support from consumers, who now see what they eat and drink as central to their concerns about the environment as well as their health and well-being. They want to know what they’re eating, where the ingredients come from, and demand transparency, asking companies what goes on behind their brands. In response to this changing demand, supply is being transformed. More and more, every time we eat and drink we make a choice–we can vote for the world we want to live in.

Danone has joined this alimentation revolution. Every day, we work to bring health through food to as many people as possible, using our products and services to encourage healthier, more sustainable eating habits in local communities. We’ve described our vision of alimentation in our Manifesto. We know that we can’t make this revolution happen alone. Backed by the energy of our employees, we’re eager to work with as many partners as possible, to step up the pace of our own effort and ultimately show that healthier eating and drinking can drive economic and social progress.

We’re now finalizing a grand strategic plan that integrates our business, economic and social goals into a single growth agenda stretching to 2030. Why 2030? Because it gives us time to make the necessary transformations, to rally and show the impact we’re making. But also because we’re joining the broader agenda established by the United Nations in 2015 when it adopted its 2030 sustainable development goals.

Between now and summer 2017 we will finalize our nine goals to be achieved by 2030. These are grouped into three broad categories:
  • a model for superior, sustainable, profitable growth, independently recognized by outside parties as fair and responsible
  • strong, engaged brands, showing each of our consumer communities that we are committed to delivering better health for people and the planet
  • a company that is inclusive, for our 100,000 employees and for our ecosystem, and that works with all our partners to offer innovative solutions for the most vulnerable.

To show the contribution Danone is making towards achieving the UN Sustainable Development Goals, we will publicly track our progress.

And we will play an important role in the Corporate Action Group of the Global Reporting Initiative and the UN Global Compact, working with other members to recommend indicators that can be used to track progress toward the UN goals.

2016
in figures