Danone Will Triple Sales of Healthy Foods
2019-05-15 09:18 Wednesday
The head of Danone, the French group that makes brands such as Evian water and Activia, has announced plans to triple sales of healthy food.
Emmanuel Faber, Danone's chief executive, said the company planned to increase sales of plant-based products from Euro 1.7 billion to Euro 5 billion by 2025, on top of its 2016 acquisition of WhiteWave, the American premium food maker.
Emmanuel Faber said there was "huge potential" for WhiteWave to sell new products as demand for organic, plant-based and non-GMO foods grew and consumers sought healthier options.
According to Nielsen, the three fastest-growing food categories in the U.S. over the past three years have been healthy: plants, fruits and agricultural products.
Milk substitutes such as soy and almonds now account for about 80% of Danone's plant-based sales, with 15% coming from non-dairy yoghurt and 5% from desserts. Faber added that Danone wanted to move further into non-dairy ice cream, vegan cheese and vegan baby food.
"Danone has one of the healthiest food portfolios in the world and we believe the structural growth of its plant-based portfolio is underestimated," analysts at Barclays said.
The group also wants to expand distribution of plant-based products, with plans to sell Alpro in Russia and Silk in Latin America. Both brands make milk-free drinks and desserts. Faber said the company wanted to encourage consumers to adopt healthier and more sustainable eating habits and was committed to pursuing a business model that went beyond creating value for shareholders.
"If we don't pay for sustainable agriculture, if we don't pay for renewable agriculture, there will be no agriculture," he said. "Now we are paying dividends and we are defining profits in a way that is fundamentally unsustainable. We are shortening the cycle."