$BN Danone | Rebuilding Through Renew: Science-Led Growth and Nutrition-Focused Strategy | TickerTrends.io

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Ticker: BN.PA
Sector: Consumer Defensive
Share Price: € 70.82
Market Cap: € 45.62B

Business Intro:

Danone is a multinational food and beverage company headquartered in Paris, France, with a mission to "bring health through food to as many people as possible." Founded in 1919 in Barcelona by Isaac Carasso, the company initially focused on producing yogurt to help combat digestive issues. Over the past century, Danone has grown into a global leader in health-focused food products, operating in more than 120 countries. The company’s portfolio includes well-known international brands such as Activia, Alpro, Evian, Nutricia, and Aptamil, covering a broad range of categories including dairy and plant-based products, bottled water, early life nutrition, and medical nutrition.

Danone is structured around three core business segments: Essential Dairy and Plant-Based Products (EDP), Waters and Specialized Nutrition (which includes both early life and medical nutrition). More recently, the company is growing its focus on plant-based and functional food innovations. The company has positioned itself at the forefront of the health and wellness trend, aiming to meet the evolving preferences of consumers who seek nutritious, sustainable, and ethically produced food.

Despite facing challenges in recent years—including shifting consumer preferences, rising input costs, and internal operational inefficiencies—Danone embarked on a transformation journey under the leadership of its new CEO, Antoine de Saint-Affrique, who took over in 2021. In response to these headwinds, the company launched the Renew Danone strategy in early 2022, aimed at restoring profitable growth and operational discipline. The first phase of this plan focused on stabilizing the business by sharpening portfolio management, improving execution at the local level, and reallocating capital to its most promising brands and categories. This included streamlining underperforming SKUs, divesting non-core assets, and reinvesting in innovation and marketing for core products. Renew Danone's success so far suggests the turnaround is gaining traction, positioning the company to deliver sustainable, profitable growth in the years ahead (more on this later).

Renew Danone:

Danone embarked on a significant strategic transformation with the launch of its "Renew Danone" initiative in 2022. This program was initiated to address a period of underperformance and reconnect the company with a sustainable and profitable growth model.