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BOUNCING BACK from the DOWNTURN, READYING for the FUTURE Features New Horizons in China, a Stopover in Argentina, Making Nature the Destination DANONE 09

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BOUNCING BACK from the DOWNTURN, READYING for the FUTURE Features New Horizons in China, a Stopover in Argentina, Making Nature the Destination DANONE 09 BRINGING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE DANONE 09 economic and social report Interview with Franck Riboud Stepping up the pace SPECIAL REPORT BOUNCING BACK FROM THE DOWNTURN, READYING FOR THE FUTURE Features New horizons in China, a stopover in Argentina, making nature the destination DANONE 09 P. 54 P. 72 P. 64 “From Madrid to Mexico and Tokyo to Warsaw, 2009 was as mixed and eventful as expected in many of the countries where Danone does business. Early on, our group decided to hold on course as storms raged. Beyond the indicators and percentages showing our success in rebounding from the downturn, this year’s report testifi es both to the responsiveness of our teams and to our group-wide commitment— market by market—to defi ning the right approach and the best responses to consumers’ changing expectations. In 2009, the Danone adventure once again inspired new projects and initiatives that grew out of our convictions and gave shape to our mission. As we formed new partnerships, paid special attention to our ecosystem, and made the most of our natural resources, we were rewarded with a year of powerful experiences that we are proud to share with you in this report.” The editorial team danone09.danone.com Visit us on the web to learn more about the people who bring the Danone adventure to life. Economic and social report Danone 2009 03 GOODBYE DANIEL Adapted from Lætitia Clavreul’s Le Monde article of May 24, 2009 Although the Danone brand is now generally In 1941, Daniel Carasso was forced to fl ee associated with the Riboud name, its origins Nazi-occupied France for the United States, and much of its success are due to another where he grew his business, changing its name family—the Carassos. Daniel Carasso, who died to Dannon to adapt to American spelling and on May 17, 2009 at the age of 103, was the pronunciation. Back in France after the war, he second in a line of family heroes that began in turned to industrial expansion in earnest, Barcelona when his father fi rst launched the opening new plants and expanding the business and named it after his son: “Danone” company’s product range to include fruit- is derived from Danon, an affectionate Catalan fl avored and low-fat yogurts. nickname for Daniel. Then in his teens, the In 1967, he tied up with Gervais, the market youngster would grow up to build the brand for leader for fromage frais. Rapid growth of over three-quarters of a century. supermarkets had brought lasting change to Daniel Carasso was born into a Sephardic French retailing, making further expansion Jewish family in Thessaloniki on December 16, essential to preserve bargaining clout. But 1905. In 1919, his father Isaac took the family Danone had sold its US subsidiary, and Daniel back to their Spanish homeland where he Carasso was no longer satisfi ed with running a began producing and selling yogurt using dairy purely French business. Enter Antoine Riboud: cultures to favor digestion. In this, Carasso drew as head of BSN, which already owned on the work of Russian scientist and Nobel Kronenbourg and Evian, he was looking for new laureate Elie Metchnikoff in the early 20th opportunities to round out his company’s century, establishing a commitment to health presence in food and beverages. “My dream was that Danone continues to this day. to make Danone a global brand,” Daniel Danone has remained faithful to its origins Carasso often said later, “and that was the stage with a focus on health that continues to this day. my thinking had reached when I met Antoine In 1929, young Daniel decided to strike out on Riboud. Our strategies were a perfect match.” his own, setting up the Société Parisienne du In 1994, what was by then a multinational Yoghourt Danone in Paris even though yogurt business dropped BSN and Gervais from its was practically unknown in France at the time. name to become simply Danone—a brand now Where his father saw yogurt primarily as a present in 50 countries, with yogurt sales April 2, 2009: During health product sold in pharmacies, Daniel totaling 51 billion servings a year. After Daniel celebrations marking the transformed it into an appetizing treat with a Carasso’s death, what remains is his legend— brand’s 90th anniversary, Daniel Carasso visited the site broader customer base and scope for large- and Danone’s abiding commitment to of Danone’s fi rst premises in scale production. innovation, which he never ceased to champion. rue André Messager (Paris). Economic and social report Danone 2009 1199 1100 Interview Franck Riboud looks back at 2009 and Danone’s strategy for rebounding from the economic downturn. 1199 09 Update 8800 The year in review: top products and initiatives in our four divisions. 4422 Strategy Danone focuses on three priorities—higher volumes, responsive teams and investment in its ecosystem—to emerge from the downturn stronger than ever. 5544 Close-up An immersion trip to China, a stop in Argentina and an escape into nature offer insights into daily life at Danone. 5544 8800 Society Shared perspectives on two key issues: our global relationship with labor and the challenges of improving nutrition around conten ts the world. 5544 9900 Governance Guylaine Saucier shares insights from her fi rst few months on Danone’s Board of Directors. 9966 Key fi gures Key fi nancial, social and environmental indicators. Our cover photo features BRINGING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE youngsters in Argentina, DANONEeconomic and social report where Danone is market 09 leader for fresh dairy products and bottled water. Photographer: Thomas Haley Interview with Franck Riboud Stepping up the pace SPECIAL REPORT BOUNCING BACK FROM THE DOWNTURN, READYING FOR THE FUTURE Features New horizons in China, a stopover in 9900 Argentina, making nature the destination RADA009_COUV+DER_UK_bat.indd 1 15/04/10 8:05:17 Economic and social report Danone 2009 07 Contributors ∞ Jacques Ponty Jacques Ponty joined Danone in 1986. After holding several other positions, he was named Managing Director of Danone Waters China in January 2009. (See p. 54) Danone ∞ Ron Oswald 15, rue du Helder - 75439 Paris Cedex 09 After working with unions in Africa, the Caribbean and www.danone.com Central America, Ron Oswald joined the International ∞ Jean-Léon Vandoorne Visitors Union of Food, Agricultural, Hotel, Restaurant, Catering, An Agence France Presse ∞ Peng Qin 17, bd Haussmann - 75009 Paris, Tobacco and Allied Workers Associations (IUF), tel.: +33 1 44 35 20 20 correspondent for ten years, Peng Qin was named Vice-President of Corporate Communications, where he has been Secretary General since 1997. Jean-Léon Vandoorne worked Danone China in 1997, becoming tel.: +33 1 44 35 20 71 (See p. 80) as a journalist, then Editor in Chairman in summer 2002. Chief of Les Echos, and later Toll-free number for shareholders: He holds dual French and Chinese 0800 320 323, L’Usine Nouvelle, LSA and citizenship. (See p. 54) (from landlines in metropolitan France) other titles. He is currently a freelance writer and editorial Director of publication: ∞ William Green consultant. Laurent Sacchi William Green has worked as a journalist ∞ Cecilia de Pierrebourg Senior editors: in the United Kingdom, for Numico in the Cecilia de Pierrebourg joined the Corporate Communica- Christine Gas, Armelle Jeandet Netherlands, and for Avon Products and IBM tions department at Danone China in Shanghai after Art director: in the United States. He currently heads the serving in the Corporate Communications department at Caroline Le Mignot Communications team at Danone’s Medical group headquarters in France. She was previously an Nutrition division. (See p. 39) account manager at Burston-Marsteller, where Danone Editorial staff: was one of her clients. (See p. 54) Soline Hervieu, Delphine Cras Photos: Chris Terry, Thomas Haley/Sipa, Jean-Charles Ast, Vincent Boreux, Côme Courteault 2010 ∞ Stéphane Dupays (www.c2prods.com), Alain Feytie, After serving as plant manager at ∞ Jeffrey Lu Eric Flogny, Chau-Cuong Lê, Studio B, Hellio - Van Ingen, Getty Images, DR Danone’s Longchamps facility in Argentina After 15 years with Numico China and Johnson in 2006, Stéphane Dupays was named & Johnson in China and the United Kingdom, English text: Durban/Blake/Clementi Industrial Director at Danone Argentina in Jeffrey Lu is currently Managing Director of 2009. He began his career with Danone in Danone Baby Nutrition China. (See p. 54) Design and production: France, in 1994. (See p. 72) ∞ Chris Terry (ref. RADA009) A photographer with more than nine years’ experience in Blédina, Danone Eaux France, Danone publishing and the press, Chris Produits Frais France have signed the Terry also works for humanitarian Responsible Advertisers’ Charter drawn up by the Sustainable Development Committee organizations including the ∞ Jian Li of France’s Union des Annonceurs. ∞ Myriam Cohen-Welgryn British Red Cross, Blesma, Combat Jian Li worked at several corporations in the Stress and Fifteen Foundation. Myriam Cohen-Welgryn joined Danone in healthcare industry before joining Danone. He is 1999. In 2002 she was appointed head of currently Managing Director of Danone Medical Marketing for our Biscuits line, becoming Nutrition China. (See p. 54) General Manager of Danone Ireland in 2007 and returning to headquarters in 2009 as General Manager Nature - VP Environment Worldwide. (See p. 64) ∞ Isabelle Domercq Isabelle Domercq joined Danone in 1998 and has been Managing Director of Danone Fresh Dairy Products China since 2006. Her experience in Asia
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