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The company launch the RESPECT program which aim is to reduce the impact of the activities on the environment and protect the employees. However an accurate assessment has to be made about the social, environmental and ethical performance of each direct supplier for the program to be successful.
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Danone published a list of six commitments they had to fulfill in order to achieve their vision. The list is updated yearly and reviewed at the end of every fiscal year for feedback purposes. Those commitments reinforce the mission of the company which is “to bring health through food ”. However, all the managers need to comprehend and use the list for the project to be a success.
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The company extended its mission to: “to bring health through food to as many people as possible ”. The aim was to tackle the malnutrition and poverty all around the world.
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Danone set up a joint venture with the Chinese company Mengniu. The yogurt business of which 29% of the shares are owned by Danone required an investment of 1.6 billion yuan. The aim was to increase the share of the dairy industry as the company was already the leading producer of biscuits and bottled water.
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“Danone Communities” was launched to finance social businesses. Funds are used for various activities such as providing access to safe water and nutrition in poverty-stricken areas. It was also used to start Grameen-Danone in Bangladesh that combat malnutrition in the country and creates employment. All the profit made by those companies are solely use for investment and Danone does not receive any dividends.
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Kraft acquired Danone’s biscuit business for 5.3 billion euros. The acquisition included major brands such as Oreo, Lu and Ritz. Also, Goerges Casalas, who was formerly the leader of the biscuit business for Danone, became the president of Kraft Biscuits Europe.
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Danone and Numico decided to merge. The purchase consisted of an all-cash offer on Monday worth 55 euros a share, which based on the number of shares currently issued, would account for a grand total of 12.3 billion euros. Two new divisions were born in Danone: Medical Nutrition and Baby Nutrition.
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Danone aims to approach its mission with a new strategy composed of four key elements: health, nature, people and for all, pursuing an integration between what they call ‘business performance and the creation of social and environmental value’.
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Danone carries an analysis of the nutritional value of the majority of their products to meet internal nutrition standards and to remain innovative in markets where several health issues can be found, by creating or modifying specific products for each one customer.
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Danone decided to acquire its main competitor in the Russian market in a strategic move that will see both companies merged. It will also incorporate to Danone the Unimilk’s businesses in Ukraine, Belarus and Kazakhstan.
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Unimilk’s activities were merged with those of Danone’s Fresh Dairy Products Division for the purpose of pooling the resources and cultures of the two entities. Furthermore, efforts were made to prioritize Unimilk’s brands, with a particular emphasis on the development of value-added dairy products. Lack of investment might have resulted in poor connection of companies and obsolescence of Unimilk’s factories.
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Started in August 2011 and ended in July 2012 acquisition allowed Danone to enter into India’s baby food and medical nutrition market. It was one of a few acquisitions of the company in developing markets. This one was mainly due to good prospects of the market because of high fertility in India.
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Danone raised its shares up to 67% from 29,2%, becoming majority shareholder. The acquisition was a part of an effort to increase its presence in the emerging North African dairy market. Centrale Laitiere accounted for around 60% of Moroccan diary sector then. It was a response for falling sales in Western Europe, mainly in Spain and focusing on African market.
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Both companies allied to develop healthy specialty yoghurt and sell it in Starbucks stores. It was in line with growing Starbucks health and wellness offerings. For Danone it was a chance to penetrate yoghurt market in the U.S. which was still dynamically growing.
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Danone is opening its R&D site (Nutricia Research centre) in the Netherlands which is focusing mainly on “early life nutrition” and “advanced medical nutrition”. The latter means focusing on developing products for sick and elderly people. Investment compatible with Danone’s strategy to be a leader of innovation in nutrition market.
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Since 2010, the economic situation in Europe has led to a significant decline in sales in these regions.The planned closure of these three plants, (which were particularly hit by the fall of sales) and a gradual shift in production volumes to another countries should allow the Fresh Dairy Products division to improve its production capacity and competitiveness in Europe. The decision would suppress 325 positions.
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On the recommendation of the CEO and Chairman Franck Riboud, some changes in the company’s governance came to life. First, chairman and CEO functions became separated, and the Chairman’s duties are strengthened. Franck Riboud remained the Chairman. Emmanuel Faber appointed Chief Executive Officer. The main reason beneath this decision was that to that the chairman can concentrate on the key medium and long term strategic issues more, and can lay the groundwork for its future.
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The new plant is building for Danone’s Early Life Nutrition business. With this investment, the company will capitalize on strong and growing demand for international early life nutrition and advanced medical nutrition brands : the output will be exported to 80 countries. As being the company’s most relevant investment so far, the new plant will double its capacity in the Netherlands, capitalizing on the experts of the current staff with state-of-art technologies.
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The two companies announced their partnership focusing on energy efficiency. The goal is to make a unique initiative in creating economic, social and environmental value.
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WhiteWave Foods Company is the maker of Horizon Organic dairy products. WIth this deal Danone’s presence will be increased in the lucrative organic foods market, and having an opportunity to reach the market for plant-based dairy substitutes.With this decision the company is expected to double its business in North America.
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With the partnership of FutureBrand, Activia is relaunched with a redesigned package. The aim of this decision was to refresh the brand with communicating the ambition of the brand, and to premiumise it in order to stay ahead in the market.
