2012 Economic and Social Report Rapport Économique Et Social Economic and Social Report YEARS DANONE 12
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HING SPE ET CIA OM L S IN S ID 1972-2012 E BRINGING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE Economic and Social Report YEARS Rapport économique et social DANONE Economic and Social Report OF UNPARALLELED 12 ADVENTURE FRANCK RIBOUD 2012—DANONE MOVES UP A GEAR 5 COUNTRIES, 5 PROFILES BEIJING NEW YORK SÃO PAULO MOSCOW VISIT DANONE.COM LONDON ON 40 YEARS OF PASSION AND WATCH AT DANONE OUR DOCUMENTARY In late 1972, Antoine Riboud announced the merger of BSN and Gervais-Danone, and in early 1973 the new company embarked on an adventure that continues WINNING 40 years later. The shared adventure of people who believe deeply that food should be a source of health and enjoyment for everyone, everywhere. The adventure of OVER men and women united by a common history and drive to find new Danone’s unique culture live on—to excel at putting 7 BILLION CONSUMERS “something specialways inside”. of making RADA012_couvder_GB_bat.indd 55 DANONEDANONE 2011 2012 26/04/13 11:41 CONTENTS LEARN MORE: ___ Danone 2012 2012 DANONE 5 03___ I LOOKING BACK—AND AHEAD MOVES UP In this annual report, we invite you to learn about our 03 Interview with performance, our priorities and the challenges facing Franck Riboud Danone in the years ahead. To visit 5 of the countries 08 Governance where we do business. And to understand how passion A GEAR for our products drives our teams—no matter where 12 ___ 5 5 COUNTRIES, 5 PROFILES they live and work. You can also review key 201212 indicatorsindi ___ EconomicInterview and Social with Report Franck Riboud,Sustainability Report Registration Document Danone’s geography is changing www.danone.com www.danone.com http://fi nance.danone.com for our group and for each of our business linesnes . —and so is our consumer base. Chairman and CEO We touch down in … 14 China: Beijing LF EAUX NUTRITION MEDIC UTRITION INFANTILE NUTR FANTILE PLF EAUX NUTRIT EDICALE NUTRITION INFAN 20 USA: New York LF EAUX NUTRITION MEDIC I UTRITION INFANTILE PLF E UTRITION MEDICALE NUTR LF EAUX NUTRITION MEDIC UTRITION INFANTILE NUTR 24 Brazil: São Paulo FANTILE PLF EAUX NUTRIT EDICALE NUTRITION INFAN 30 Russia: Moscow EAUX NUTRITION ME TRITION INFANTILE NU 36 UK: London ANTILE PLF EAUX NUT DICALE NUTRITION IN EAUX NUTRITION ME TRITION INFANTILE PL TRITION MEDICALE NU EAUX NUTRITION ME TRITION INFANTILE NU ANTILE PLF EAUX NUT 41 ___ LF EAUX NUTRITION MEDIC WINNING OVER 7 BILLION UTRITION INFANTILE NUTR FANTILE PLF EAUX NUTRIT EDICALE NUTRITION INFAN LF EAUX NUTRITION MEDIC CONSUMERS UTRITION INFANTILE PLF E UTRITION MEDICALE NUTR LF EAUX NUTRITION MEDIC UTRITION INFANTILE NUTR FANTILE PLF EAUX NUTRIT 42 Danone: global brand, EDICALE NUTRITION INFAN global (p)reference EAUX NUTRITION ME 46 Seek fi rst TRITION INFANTILE NU ANTILE PLF EAUX NUT DICALE NUTRITION IN EAUX NUTRITION ME to understand TRITION INFANTILE PL TRITION MEDICALE NU EAUX NUTRITION ME TRITION INFANTILE NU ANTILE PLF EAUX NUT 50 Africa: the new frontier? LF EAUX NUTRITION MEDIC UTRITION INFANTILE NUTR FANTILE PLF EAUX NUTRIT EDICALE NUTRITION INFAN Danone: 15, rue du Helder - 75439 Paris Cedex 09, France - Visitors: 17, bd Haussmann, 75009 Paris - tel.: +33 1 44 35 20 20 - LF EAUX NUTRITION MEDIC UTRITION INFANTILE PLF E ___ UTRITION MEDICALE NUTR 52 Corporate Communications - tel.: +33 1 44 35 26 33 - www.danone.com - Shareholder hotline: 0800 320 323 (toll free from LF EAUX NUTRITION MEDIC UTRITION INFANTILE NUTR FANTILE PLF EAUX NUTRIT landlines in metropolitan France) EDICALE NUTRITION INFAN 2012 IN REVIEW Director of publication: Laurent Sacchi - Executive editor: Stéphanie Rismont - Senior editor: Sabrina Schneider - Key indicators & performance Editor: Sandrine Fossard - Photos: Chris Terry, Thomas Haley/Sipa, Éric Flogny, Laurent Vautrin, Marc Hallet, Éric Manas, Hellio-Van by business line Ingen, Getty Images, Istockphoto, Danone and Danone brands photo archive, DR - Design & production: (ref RADA012) - English text: Clementi/Durban WINNING OVER 54 Fresh Dairy Products 56 Waters Blédina, Danone Eaux France and Danone Produits Frais France have signed the Responsible Advertisers’ Charter drawn up by the Sustainable Development Committee of France’s Union des Annonceurs (UDA). 7 BILLION CONSUMERS 58 Baby Nutrition The characters depicted in our fi ve country profi les are composites. and realizing the dream of two visionary business leaders 60 Medical Nutrition This report is printed by Dridé on Cocoon Off set paper, 62 Key fi gures —Antoine Riboud and Daniel Carasso—who joined forces 100% recycled and FSC certifi ed. in 1972 to “make Danone a global brand.” LOGO FSC 2 ----- DANONE - Two thousand twelve edition Two thousand twelve edition - DANONE ----- 3 RADA012_couvder_GB_bat2.indd 2 RADA012_03a07_ENTRETIEN_GB_bat.indd 3 25/04/1329/04/13 16:39 12:15 ___ Interview with FRANCK RIBOUD WE HAVE A we’re very happy about it: in these new Bonafont—the no. 1 bottled water in Yet as you say, countries, demand is strong and pop- Mexico—is now market leader in there were contrasts. RESPONSIBILITY ulations are growing, which means Brazil. Nutricia is Europe’s benchmark our product categories are a perfect brand for medical nutrition, and its FR: Our geographical profi le is now TO STAY ACTIVE match. Th e good fi t between Danone strong debut in China, Brazil and completely transformed, and that’s IN EUROPE—FOR products and consumers in these new Turkey shows that it is expanding its what will shape our future in the years markets is particularly evident in our borders. It’s all of these brands that are ahead. Today, 40% of our sales are gen- JOBS, FOR OUR two newest business lines—Baby building the Danone of tomorrow. erated in Europe, not counting the CIS, BUSINESS, AND Nutrition and Medical Nutrition. In that sense, 2012 marks the begin- while 60% come from emerging and/ Th e second explanation for this very ning of an adventure that we’ve been or high-growth markets. Now, that can TO KEEP OUR strong growth in emerging economies working toward for years. So despite NEW ISSUES, be seen as a very good sign since it SALES BY PRODUCTS ON is the massive energy that our teams difficulties in some countries, on the NEW REGIONS, means our numbers will automatically BUSINESS LINE have contributed. It’s clear that these whole our foundations are extremely improve—they can’t help but grow: STORE SHELVES. countries off er huge promise for food solid and have been since 2008. And €20.9 bn in sales AND THE emerging markets are now expanding ----- Franck Riboud companies, and our people have done it looks to me as though our business OUTLOOK by 12%, and that trend is snowballing. 56% Fresh Dairy Products a great job. Th ey’re eager to grow, win model will prove to be a lasting one. And given the trends in mature markets, 20% Baby Nutrition market share and reach ever larger FOR EUROPE where growth is weaker and even 18% Waters critical mass. Th eir energy and entre- ___ Interview slightly negative in some cases, you 6% Medical Nutrition preneurial spirit played a crucial role Fresh Dairy Products aren’t might conclude that they’ll gradually in accelerating both our sales growth doing quite as well, though... become less important to our business, € bn 11.675 and our profi tability. relatively speaking. We could simply FR: Fresh Dairy Products (FDP) accept this and view the diffi culties we’re account for 56% of our sales, or nearly encountering in Europe as accelerating What lessons do you draw from €11.7 billion. Th ose two fi gures give Danone Chairman and CEO Franck our transformation and helping to shift this shift ? some idea of the sheer scale of the Riboud looks back at 2012 and refl ects our center of gravity. But abandoning business. But it’s true that the division on its lessons. It was a year when Europe is not an option; I’ll say more 4.257 FR: Th e main lesson goes back to our is growing more slowly than our other markets outside Europe—now 60% of about that in a minute. 3.649 decision to stay with the strategy we business lines, even in emerging total sales—came into their own. adopted more than fi ft een years ago. countries. One reason for that is our 1.288 Because our two fundamental priorities history. When we expanded—when we How do you explain your good —strong brands and clearly defi ned geo- got our start in Spain, France and 2012 was a year of contrasts in results outside Europe? graphical choices—have never wavered. Italy—our business focus was fresh many ways. Looking back, how SALES AND Here 2012 is a perfect illustration of dairy products. Historically, this is a would you describe it? FR: To be honest, it’s easier to turn in GROWTH IN 2012 Danone’s geographical transformation, European business. Per capita fi gures a strong performance when overall BY BUSINESS LINE* driven by local brands that are now say it all: when it comes to consumption Franck Riboud: For Danone, it was conditions are good. And what are on their way to becoming the most of fresh dairy products, no country a very good year overall—true, there were “good overall conditions” when you sell 11.6% Baby Nutrition important in our group. anywhere in the world is in the same contrasts from region to region, and the consumer products? Rising disposable 10.0% Waters We’re continuing to gain market share league as Europe, which averages overall environment was complex. But income, an emerging middle class, 5.9% Medical Nutrition with brands like Evian, now sold in about 30-35 kg per person per year.