Groupe DANONE Health Commitment and Fact Book
Total Page:16
File Type:pdf, Size:1020Kb
Groupe DANONE Health Commitment and Fact Book First release March 10, 2005 Focus on Probiotics Forward looking statements This presentation contains forward-looking statements that reflect Danone's current views and estimates. These statements are based on many factors and assumptions. Changes in such factors or assumptions could produce significantly different results. Executive summary Groupe DANONE has built strong leadership and brand equity in its categories, with Nutrition and Health central to the business foundations of the Group and to its sales growth track record. Groupe DANONE’s business model and research strategy have yielded business successes and opened new potential worldwide. Groupe DANONE continues to strengthen its commitment to Health and Nutrition and has identified growth opportunities in this area. Groupe DANONE has the R&D capabilities and the marketing know-how to achieve its strategic goals in the growing Health and Nutrition market. Contents Health & Nutrition are deemed to be, more than ever, major drivers of top line growth for the food industry What Health & Nutrition mean for Groupe DANONE Our commitment in terms of product offer Danone Vitapole: a catalyst for innovation Our commitment in terms of product communication Our commitment in terms of knowledge and education in Health & Nutrition Focus on Probiotics Introduction Health & Nutrition are deemed to be, more than ever, major drivers of top line growth for the food industry In 2004, Danone has hit a record top line growth… +7.0% +6.0% +7.8% +5.1% +7.2% +2.9% Major 0 European 1 200 2 peers * 200 3 200 200 4 200 4 200 +6.6% Average 1999-2004 +3.6% … confirming its number-one position for top-line growth Major European peers* * Cadbury, Nestlé, Unilever Our focus on three fast-growing food categories: a major driver of growth Still bottled water +11.8% Functional drinks +9.4% Yog & assimilated +4.6% Frozen food +3.7% Sauces & Cond. +2.9% Savoury biscuits Health & Nutrition +2.7% = Cheese +2.6% a key lever Sweet biscuits of consumption +2.4% Ice Cream +2.4% Confectionery +2.2% Carbonated soft drinks +2.0% Baby food +2.0% Retail volume CAGR Soup 99-04 +1.9% RTE cereals Worldwide +0.8% 0% 2% 4% 6% 8% 10% 12% Source: Euromonitor Health positioning: a key success factor for sustainable superior top line growth Like-for-like growth CAGR 03-04 8.0% 7.0% Danone 6.0% PepsiCo Nestlé Kellogg 5.0% 4.0% Campbell Coca-Cola General Mills 3.0% Cadbury Kraft 2.0% 1.0% Heinz Unilever 0.0% 11 9 7 5 3 1 Health ranking Food * Average ranking JP Morgan/ UBS/ Morgan Stanley analyst* Obesity has become a major public health issue… Obesity is rising to epidemic levels, affecting 300 million people around the world (1) Obesity is also an issue for developing countries Obesity results from both a sedentary lifestyle and changes in nutritional behavior Obesity is a contributory factor in cardiovascular disease, diabetes, some cancers, joint disorders and other pathologies… (1) Source: WHO report, March 2004 … but concern for health extends beyond prevention of obesity Consumers and health professionals also look for : Optimal growth, i.e supporting physical and mental development, building and preserving sound bone and dental capital… Protection, i.e, preventing deficiencies, supporting immunity, maintaining cardiovascular health, preventing damage from free radicals … Well-being, i.e facilitating digestion, optimizing hydration, managing satiety and energy levels … What Health & Nutrition mean for Groupe Danone Health & Nutrition are central to Groupe DANONE’s mission statement Groupe DANONE helps people around the world grow, live better and get more out of life through tastier, more varied and healthier food products - every day Our Health & Nutrition strategy is multi-pronged Understanding Health and Nutrition science and integrating public health issues Structuring our product offer to better meet consumer needs by: - Optimizing the nutritional profile of our products - Adapting our products to local nutritional needs, eating habits, and consumption occasions - Developing products with additional proven health benefits Contributing to consumer information and education on Health and Nutrition Health & Nutrition are part of Groupe DANONE’s DNA Discovery of the health First LU Focus on three product A steady stream of Yogurts sold in First zero-fat benefits of the biscuits, categories with Health products with added pharmacies «fromage frais » natural mineral rich in grain and Nutrition value health benefits water in Evian 1789 1846 1919 1964 Isaac Carasso conducts research into lactic cultures with health benefits, working with the Pasteur Institute and Elie Metchnikoff. 1996 Today Groupe Danone has strong core beliefs regarding Food, Nutrition, and Health A balanced diet combined with regular physical activity is crucial to individual health. Only a wide variety of food can satisfy all nutritional needs. Drinking and eating are basic needs- They should also be a pleasure. The social and convivial aspect of meals is an essential part of well-being. Individuals must be free to choose their own food, and to decide when and how they eat. They need clear and relevant information to make their choices. These beliefs are embodied in 9 commitments To develop new products suited to consumers' nutritional needs and tastes, as well as products offering added health benefits, and to regularly improve existing products To establish permanent relations with the scientific community To support and encourage research in nutrition To share knowledge with scientists, health professionals, and the public To cooperate effectively with authorities and other public bodies To provide clear and transparent communication To claim only scientifically proven benefits To use responsible advertising To promote physical activity These commitments are stated in Groupe Danone’s Food, Health, and Nutrition Charter Shared by all Group companies Contribute strongly to our corporate culture Our commitment in terms of product offer: To develop new products suited to consumers' nutritional needs and tastes, as well as products offering added health benefits, and to regularly improve existing products Ensuring a good nutritional profile for our products: a constant priority Using an in-house tool to evaluate and improve the nutritional profile of our products according to several composition criteria Applied to Dairy and Biscuits & Cereal products PRODUCT ×× CONSUMER POSITIONING (or meal, diet ) == Re-balancing potential l a i t n e t o p g n Nutritional i Nutritional profile c requirements n a l according to a consumer target b Un Improving nutritional profiles: recent initiatives in Biscuits and Cereal products Cross-brand initiatives: Trans-fatty acids threshold in DANONE products since 1998 : below 5 % of total fats Brand initiatives: Nutritional guidelines for Taillefine/ Vitalinea applied since 1998, LU and Prince Petit Déjeuner/ Breakfast brands since 1999 2001: optimization of the fatty-acid profile by using rapeseed oil for the Taillefine/ Vitalinea brand in Europe 2004 : total sugar content of LU Petit Déjeuner in France cut by 25%, replaced mainly with flour and fibers Developing innovative nutritional proposals: Long Lasting Energy A concept developed by Danone Vitapole for Biscuits and Cereal products, launched in 1999, after 10 years of research Favoring a better use of energy by the body Based on a high content of slowly digestible carbohydrates Contributing to good nutrition A family-oriented product A cereal base for a balanced breakfast Launched in 1999 and now available in 9 countries LU Petit Déjeuner (France), Prince Start (Belgium), BeBe Dobre Rano (Czech Republic), Jubilee Good Morning (Russia), Sunshine (China)… Adapting products to meet local nutritional needs (I) Danonino has been adapted to nutritional needs of local children in 12 countries with specific vitamin or mineral fortifications: Brazil: enriched with calcium, zinc, iron, vitamins A and D Mexico: fortified with zinc, vitamins A, C and D Poland and the US: enriched with calcium and vitamin D France: fortified with vitamin D In Europe, launch of Bio/ Activia line extensions with added fibers In Asia, launch of biscuits with added calcium or iron Adapting products to meet local nutritional needs (II) Bringing a quick response to a local trend: low-carb diets in the US 60 million people in the US are on low-carb diets and have thus reduced their consumption of dairy products Dannon launched its low-carb range in January 2004: Light’n Fit Carb Control, now available in both cups (5 flavors) and bottles (4 flavors) Dannon offer: balanced low-carb dairy products to meet the essential daily calcium requirements of people on low-carb diets. Danone has gained a clear lead in this segment (over 50% market share), which represented approx. 5% of the total value of the fresh dairy product market in 2004 Marketing affordable nutrition: Biscuits in Asia Affordability is key in developing countries Two billion people live on less than 2 Our answer : affordable nutrition euros a day in Asia Affordable Nutrition Indonesia : Biskuat Susu with added calcium China : Danone Milk Biscuits with added calcium for children India : Britannia Tiger with extra milk and calcium Expanding water and beverage offerings for consumers Increasing consumption of packaged water: Promoting the benefits of good hydration Enhancing product availability and convenience Offering safe packaged water in developing countries Conquering new territories: