Introduction In 1996 France accounted for 41.5% of sales, but in 2011 represented just 11% of total sales. The group’s Fresh Dairy Products segment is number one (by sales) in Central Europe, North America, Latin America, and Africa and the Middle East. Danone is also a major player in all regions through its other segments.
Scope of this research MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions. Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends. Research and analysis Highlights In 1996 around 87% of the group’s sales were attributable to mature economies, with 13% attributable to emerging economies. In 2011, emerging markets accounted for the majority (51%) of sales.
Danone defines the MICRUB nations (Mexico, Indonesia, China, Russia, US, and Brazil) as having particularly strong demographic and geographic potential. In 2011, 58% of the group’s growth was generated by MICRUB.
In 1996, the company operated through nine business lines: Fresh Dairy Products, Biscuits, Water, Heat and Serve Specialties, Cheese, Beer, Glass, Sauces, and Pasta. By 2011, Danone had reduced its business lines to four: Fresh Dairy Products, Water, Medical Nutrition, and Baby Nutrition.
Key reasons to purchase this research How has Danone expanded geographically in the past 15 years? How have Danone's products and segments changed in the past 15 years? How has Danone transformed from the company it was in 1996 to the company it is now?
Table Of Contents
Danone: 15 years of transformation Table of Contents Overview 2 Catalyst 2 Summary 2 Table of Contents 3 Analysis 5 Danone is a global market leader in dairy, water and nutrition 5 Two glass-makers merged to form Group Danone 5 The company currently operates through four business lines 5 Growth in Asia Pacific and the rest of the world has driven sales 6 Danone's largest segment experienced the strongest growth in 2011 6 Danone has transformed its global footprint since 1996 8 In 1996, the company's efforts were focused on Europe and, in particular, France 8 The âMICRUBâ nations represent strong potential growth 8 Sales and acquisitions in the mid-1990s began to affect company revenues 8 Since 2007, the company has expanded its operations to 26 new countries 9 Economic troubles in Western Europe have affected the company 11 Danone's product lines have decreased since 1996 12 The company has sold a number of its business lines 12 Danone has acquired a number of companies 12 One major acquisition was Numico 12 The company has identified areas of strong growth 12 Danone now emphasizes the importance of health, nutrition, and innovation 14 Conclusions 15 Danone has an increasingly health-conscious focus on emerging markets 15 Appendix 16 Sources 16 Further reading 16 Ask the analyst 16 About MarketLine 17 Disclaimer 17
TABLE OF FIGURES Figure 1: A selection of the products sold by Danone 6 Figure 2: Danone revenues ($m), 1996-2011 7 Figure 3: Danone geographical presence, 1996 10 Figure 4: Danone geographical presence, 2011 10 Figure 5: Average annual dairy price index, 1996-2011 11 Figure 6: Contribution to Danone's revenues, by business segment (%), 1996, 2003, and 2011 13