Danone S.A. () is a French
multinational food-products
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
based in
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
. It was founded in
Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
,
Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
. It is listed on
Euronext Paris
Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon, and Brussels exchanges in September 2000 to form Euronext NV. As of 2022, the 795 companies listed had a combined marke ...
where it is a component of the
CAC 40
The CAC 40 (french: CAC quarante ) (''Cotation Assistée en Continu'') is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant stocks among the 100 largest market caps on the E ...
stock market index. Some of the company's products are branded Dannon in the United States.
As of 2018, Danone sold products in 120 markets, and had sales in 2018 of €24.65 billion.
In the first half of 2018,
29% of sales came from specialized nutritional preparations, 19% came from branded bottled water, and 52% came from dairy and plant-based products (including
yogurt
Yogurt (; , from tr, yoğurt, also spelled yoghurt, yogourt or yoghourt) is a food produced by bacterial Fermentation (food), fermentation of milk. The bacteria used to make yogurt are known as ''yogurt cultures''. Fermentation of sugars in t ...
).
History
Name
![Isaac carasso](https://upload.wikimedia.org/wikipedia/commons/3/3e/Isaac_carasso.jpg)
Danone was founded by
Isaac Carasso
Isaac Carasso (1874 – 19 April 1939) was a member of the prominent Sephardic Jewish Carasso (Karasu) family of Ottoman Salonica (modern Thessaloniki, Greece). After emigrating to Barcelona, he started a yogurt factory which later became Group ...
(born İzak Karasu), a
Salonica
Thessaloniki (; el, Θεσσαλονίκη, , also known as Thessalonica (), Saloniki, or Salonica (), is the second-largest city in Greece, with over one million inhabitants in its metropolitan area, and the capital of the geographic region of ...
-born
Sephardic Jewish
Sephardic (or Sephardi) Jews (, ; lad, Djudíos Sefardíes), also ''Sepharadim'' , Modern Hebrew: ''Sfaradim'', Tiberian: Səp̄āraddîm, also , ''Ye'hude Sepharad'', lit. "The Jews of Spain", es, Judíos sefardíes (or ), pt, Judeus sefar ...
physician from the
Ottoman Empire
The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University) ...
, who began producing yogurt in
Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
, Spain in 1919. The brand was named Danone, which translates to "little Daniel", after his son
Daniel Carasso Daniel Carasso (December 16, 1905 – May 17, 2009) was a French American member of the prominent Sephardic Jewish Carasso family and the son of Isaac Carasso, founder of the (now) multinational Danone.
Biography
Carasso, son of Isaac Carasso, w ...
.
In 1929, Isaac Carasso moved the company from Spain to France, opening a plant in Paris. In 1942, Daniel Carasso moved the company to New York.
In the United States, Daniel Carasso partnered with the Swiss-born Spaniard Juan Metzger and changed the brand name to Dannon to sound more American.
In 1951, Daniel Carasso returned to Paris to manage the family's businesses in France and Spain, and the American business was sold to
Beatrice Foods
Beatrice Foods Company was a major American food processing company founded in 1894. In 1987, its international food operations were sold to Reginald Lewis, a corporate attorney, creating TLC Beatrice International, after which the majority of ...
in 1959; it was repurchased by Danone in 1981.
In Europe in 1967, Danone merged with Gervais, the leading fresh cheese producer in France, and became Gervais Danone. In 1973, the company merged with bottle maker BSN. The company changed its name to Groupe Danone in 1983.
Strategic reorientation
The acquisitions initially took the shape of vertical integration, with BSN acquiring Alsatian brewer
Kronenbourg
Kronenbourg Brewery (french: Brasseries Kronenbourg, German: ''Kronenbourg Brauerei'', ) is a brewery founded in 1664 by Geronimus Hatt in the Free Imperial City of Straßburg, Holy Roman Empire (today Strasbourg, France). The name comes from the ...
and
Evian
Evian ( , ; , stylized as evian) is a French company that bottles and commercialises mineral water from several sources near Évian-les-Bains, on the south shore of Lake Geneva. It produces over 2 billion plastic bottles per year.
Today, Evia ...
branded mineral water who were the glassmaker's largest customers. This move provided content with which to fill the factory's bottles.
In 1973, the company merged with Gervais Danone and began to expand internationally, including a rebranding of the Dannon yogurt brand in the U.S. and a successful ad campaign,
In Soviet Georgia. In 1979, the company abandoned glassmaking by disposing of Verreries Boussois. In 1987, Gervais Danone acquired European biscuit manufacturer Général Biscuit, owners of the
LU brand, and, in 1989, it bought out the European biscuit operations of
Nabisco
Nabisco (, abbreviated from the earlier name National Biscuit Company) is an American manufacturer of cookies and snacks headquartered in East Hanover, New Jersey. The company is a subsidiary of Illinois-based Mondelēz International.
Nabisco's ...
, The operation included UK manufacturers
Huntley and Palmers
Huntley & Palmers is a British company of biscuit makers originally based in Reading, Berkshire. Formed by Joseph Huntley in 1822, the company became one of the world's first global brands (chiefly led by George Palmer who joined in 1841) and r ...
,
Peek Frean
Peek Freans is the name of a former biscuit making company based in Bermondsey, London, which is now a global brand of biscuits and related confectionery owned by various food businesses. Owned but not marketed in the UK, Europe and USA by De Be ...
, and
Jacob's
Jacob's is a brand name for several lines of biscuits and crackers in the Republic of Ireland and the United Kingdom. The brand name is owned by the Jacob Fruitfield Food Group, part of Valeo Foods, which produces snacks for the Irish market. ...
, which had previously merged to form Associated Biscuits Ltd.
In 1994, BSN changed its name to Groupe Danone, adopting the name of the group's best-known international brand. Franck Riboud succeeded his father, Antoine, as the company's chairman and chief executive officer in 1996 when Riboud senior retired. Under Riboud junior, the company continued to pursue its focus on three product groups (dairy, beverages, and cereals) and divested itself of several activities which had become non-core including
Amora,
Liebig
Justus Freiherr von Liebig (12 May 1803 – 20 April 1873) was a German scientist who made major contributions to agricultural and biological chemistry, and is considered one of the principal founders of organic chemistry. As a professor at the ...
, and
Maille brands.
![Danone Saclay](https://upload.wikimedia.org/wikipedia/commons/1/1b/Danone_Saclay.JPG)
In 1999 and 2003, the group sold 56% and 44%, respectively, of its glass-containers business. In 2000, the group also sold most of its European beer activities (the brand
Kronenbourg
Kronenbourg Brewery (french: Brasseries Kronenbourg, German: ''Kronenbourg Brauerei'', ) is a brewery founded in 1664 by Geronimus Hatt in the Free Imperial City of Straßburg, Holy Roman Empire (today Strasbourg, France). The name comes from the ...
and the brand 1664 were sold to
Scottish & Newcastle
Scottish & Newcastle plc was a brewing company headquartered in Edinburgh, Scotland, which expanded from its home base to become an international business with beer volumes growing almost tenfold.
The company was listed on the London Stock Exc ...
for £1.7 billion;
its Italian cheese and meat businesses (
Egidio Galbani Spa) were sold in March 2002; as were its beer producing activities in China. The company's British (''Jacob's'') and Irish biscuit operations were sold to
United Biscuits
United Biscuits (UB) is a British multinational food manufacturer, makers of McVitie's biscuits, Jacob's Cream Crackers, and Twiglets. The company was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. In Nove ...
in September 2004.
In August 2005, the Group sold its sauces business in the United Kingdom and in the United States (
HP Foods
HP Foods Limited, formerly based in Birmingham, England was best known as the producer of HP, Lea & Perrins, and Daddies sauce brands.BBC Newsbr> Heinz buys HP sauce in £470m deal 20 June 2005. Retrieved on 11 March 2008. It was also the UK l ...
), in January 2006, its sauces business in Asia (
Amoy Food
Amoy Food Limited is a manufacturer of cooking sauces and condiments in Hong Kong. Its products, which now include foodstuffs such as frozen foods and instant foods for heating in a microwave oven, are sold around the world. It was acquired in 2 ...
) was sold to
Ajinomoto
is a Japanese multinational food and biotechnology corporation which produces seasonings, interlayer insulating materials for semiconductor packages for use in personal computers, cooking oils, frozen foods, beverages, sweeteners, amino acids, an ...
. Despite these divestitures, Danone continues to expand internationally in its three core business units, emphasising health and well-being products.
In July 2007, it was announced that Danone had reached agreement with
Kraft Foods Inc
Kraft Foods Inc. was a multinational confectionery, food and beverage conglomerate. It marketed many brands in more than 170 countries. 12 of its brands annually earned more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell Hous ...
(now
Mondelēz International
Mondelez International, Inc. ( ), often styled Mondelēz, is an American Multinational corporation, multinational confectionery, food industry, food, holding and drink industry, beverage and snack food company based in Chicago. Mondelez has an ...
) to sell most of its biscuits division, including the LU and Prince brands but excluding Latin American (
Bagley) and Indian (
Britannia Industries
Britannia Industries Limited is an Indian company specialised in food industry, part of the Wadia Group headed by Nusli Wadia. Founded in 1892 and headquartered in Kolkata, it is one of India's oldest existing companies and best known for it ...
) units, for around €5.3 billion.
Also in July 2007, a €12.3 billion cash offer by Danone for the Dutch
baby food
Baby food is any soft easily consumed food other than breastmilk or infant formula that is made specifically for human babies between four and six months and two years old. The food comes in many varieties and flavors that are purchased ready-mad ...
and clinical nutrition company Numico was agreed to by both boards, creating the world's second-largest manufacturer of baby food.
In 2009, the company changed its name from Groupe Danone to Danone.
Danone acquired the Unimilk group's companies in Russia in 2010 and the Wockhardt group's nutrition activities in India in 2012. In mid-February 2013 Danone announced their intention to cut 900 jobs or about 3.3 percent of their 27,000 person European workforce.
Since 2013, Danone has grown on the African continent, notably with the acquisition of a controlling interest in Centrale Danone in Morocco and equity interests in Fan Milk in West Africa and Brookside in Kenya.
In 2014,
Emmanuel Faber
Emmanuel Faber (born 22 January 1964) is a French businessman. He was formerly the Chief Executive Officer of Danone, and the Chairman of the Board of directors. He was subsequently appointed Chair of the International Sustainability Standards Bo ...
became CEO.
![World locations of Danone Group factories](https://upload.wikimedia.org/wikipedia/commons/5/5e/World_locations_of_Danone_Group_factories.svg)
Danone was present in 130 markets and generated sales of US$25.7 billion in 2016, with more than half in developing countries. In 2015, fresh dairy products represented 50% of the group's total sales, baby food 22%, branded water 21%, and medical nutrition 7%. In 2017,
Franck Riboud
Franck Riboud (born 7 November 1955) is a French businessman. He served as the chairman of Danone.
Biography
Franck Riboud was born on 7 November 1955 in Lyon. He is the son of Antoine Riboud, the previous CEO, who transformed the former Europe ...
became honorary chairman and Faber became chairman as well as retaining his CEO position.
In 2018, Danone rebranded its DanoneWave subsidiary, formed after the 2017 acquisition of
WhiteWave Foods
Danone North America is a consumer packaged food and beverage company based in White Plains, New York, U.S., that manufactures, markets, distributes, and sells branded premium dairy products (including yogurt), plant-based foods and beverages, c ...
(
Alpro
Alpro is a European company based in Wevelgem, Belgium, that markets organic and non-organic, non-genetically modified, plant-based products, such as foods and drinks made from soy, almonds, hazelnuts, cashew, rice, oats or coconut. Alpro employ ...
), into Danone North America.
In 2020, Danone announced that, as part of a reorganization, it will cut up 2,000 jobs, or 2% of its workforce.
In late 2020, the entry of the London-based
hedge fund
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...
Bluebell Capital as a shareholder of Danone put
Emmanuel Faber
Emmanuel Faber (born 22 January 1964) is a French businessman. He was formerly the Chief Executive Officer of Danone, and the Chairman of the Board of directors. He was subsequently appointed Chair of the International Sustainability Standards Bo ...
’s position into question. In a letter sent to all shareholders in November 2020, they qualified Danone's stock market performance under the presidency of Emmanuel Faber of overall “disappointing”, arguing that “the right balance between shareholder value creation and sustainability issues” had not been struck under his tenure.
After the publication of only slightly comforting 2020 results and disappointing first trimester turnover figures, Bluebell Capital's activism paid off and Faber was ousted in mid-March 2021.
On May 16, 2021, the arrival of
Antoine Bernard de Saint-Affrique
Antoine Bernard de Saint-Affrique is a French businessman. He was appointed CEO of the Danone group in May 2021. His family name is ''Bernard de Saint-Affrique'', sometimes abbreviated to ''de Saint-Affrique'', and his given name is Antoine.
Fa ...
as the next CEO of Danone is announced, to be effective on September 15.
Corporate governance
Head office
Danone's head office has been located in the
9th arrondissement of Paris
The 9th arrondissement of Paris (''IXe arrondissement'') is one of the 20 arrondissements of the capital city of France.
In spoken French, this arrondissement is referred to as the neuvième (; "ninth").
The arrondissement, called Opéra, is loc ...
since 2002.
[Danone : regrouper les salariés dans un même bâtiment]
" ''Le Journal du Net''. Retrieved 26 July 2010.
Executives and board
Danone is led by a CEO and chairman as well as a board of directors. As of 26 April 2018 the 16 members of the Board of Directors are:
*
Antoine de Saint-Affrique – CEO
*
Franck Riboud
Franck Riboud (born 7 November 1955) is a French businessman. He served as the chairman of Danone.
Biography
Franck Riboud was born on 7 November 1955 in Lyon. He is the son of Antoine Riboud, the previous CEO, who transformed the former Europe ...
– Honorary Chairman
*
Guido Barilla
Guido Barilla (born 30 July 1958) is an Italian billionaire businessman, and the chairman of Barilla Group, the world's largest pasta company, which is 85% owned by Guido, a sister and two brothers.
Early life
Guido Barilla was born on 30 July 1 ...
*Frédéric Boutebba
*Cécile Cabanis
*Gregg L. Engles
*Clara Gaymard
*
Michel Landel Michel Landel was born on 7 November 1951 in Meknes, Morocco. He was the CEO, Director and Chairman of the Executive Committee of Sodexo until January 2018.
Biography
After graduating from the European Business School, Michel Landel worked for C ...
*Gaëlle Olivier
*
Benoît Potier
Benoît Potier (born 3 September 1957) is a French businessman who served as CEO of the France, French multinational industrial gas company Air Liquide between 2006 and 2022. He is currently Chairman of the Board of Directors of Air Liquide SA. ...
*Isabelle Seillier
*
Jean-Michel Severino
Jean-Michel Severino (born 6 September 1957) is a French banker with particular interest in sustainable development. He has held senior positions in the World Bank, and served for more than nine years as the CEO of France's government agency for i ...
*Virginia A. Stallings
*Bettina Theissig
*
Serpil Timuray
Serpil Timuray is a Turkish businesswoman, the current Chief Executive of Vodafone Africa, Middle East and Asia-Pacific (AMAP) region.
Early years
She was educated in the Üsküdar American Academy in Istanbul, and graduated from the Asheville H ...
*Lionel Zinsou-Derlin
As of 2021 the members of the executive committee are as follows:
Main brands
Danone's brand portfolio includes both international brands and local brands. In 2018, Danone's international brands include:
Activia
Activia is a brand of yogurt owned by Groupe Danone (Dannon in the United States) and introduced in France in 1987. As of 2013, Activia is present in more than 70 countries and on 5 continents. Activia is classified as a functional food, designed ...
,
Actimel
Actimel (known as DanActive in the United States and Canada) is a probiotic yogurt-type drink produced by the French company Danone.
Actimel earned over €1.4 billion (US$1.8 billion) in retail sales in 2006.
History
Actimel was invented in ...
,
Alpro
Alpro is a European company based in Wevelgem, Belgium, that markets organic and non-organic, non-genetically modified, plant-based products, such as foods and drinks made from soy, almonds, hazelnuts, cashew, rice, oats or coconut. Alpro employ ...
, Aptamil, Danette,
Danimals
Danimals is an American brand of low-fat drinkable yogurt. Launched by Dannon in 1994, it is decorated with pictures of wild animals and is popular among children and in school lunches.
History
Danimals parent company Dannon popularized yogu ...
, Danio,
Dannon
Danone S.A. () is a French multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are ...
, Danonino,
Evian
Evian ( , ; , stylized as evian) is a French company that bottles and commercialises mineral water from several sources near Évian-les-Bains, on the south shore of Lake Geneva. It produces over 2 billion plastic bottles per year.
Today, Evia ...
,
Nutricia
Nutricia is a Danone brand that specialises in therapeutic food and infant formula, including medical nutrition for babies with specific needs.
The former company, N.V. Nutricia., was established in The Netherlands by brothers Jan and Martinus v ...
, Nutrilon,
Volvic
Volvic () is a commune in the Puy-de-Dôme department in Auvergne in central France.
The church at Volvic is dedicated to “St Priest” (Projectus), who is reputed to have been killed here in 676 AD.
Population
International relations
Vo ...
. Local or regional brands include: AQUA (Indonesia), Blédina (France), Bonafont (Mexico and Brazil),
Cow & Gate
Cow & Gate was a United Kingdom based dairy products company, which expanded into milk bottling, distribution, and baby food production. It merged in 1959 with United Dairies to form Unigate plc, which today is known as Uniq plc. The Cow & Gate br ...
(UK),
Happy Family (USA),
Horizon Organic
Horizon Organic is an American company, founded in 1991, that produces organic milk and other organic food products. Horizon Organic is the largest supplier of organic milk in North America. Its products are sold in supermarkets and grocery stores. ...
(USA), Mizone (China and Indonesia), Oikos (North America, Chile), Prostokvashino (Russia),
Silk
Silk is a natural protein fiber, some forms of which can be woven into textiles. The protein fiber of silk is composed mainly of fibroin and is produced by certain insect larvae to form cocoons. The best-known silk is obtained from the coc ...
(USA) and
Damavand
Mount Damavand ( fa, دماوند ) is a dormant stratovolcano, the highest peak in Iran and Western Asia and the highest volcano in Asia and the 2nd highest volcano in the Eastern Hemisphere (after Mount Kilimanjaro), at an elevation of . ...
(Iran).
Ownership
The (43)% shares of Danone are owned by American investors, (19)% by French investors, followed by the UK (10%), Switzerland (6%), Germany (5%) and rest of Europe (17%).
Joint ventures
In some areas, Danone has adopted a strategy of growth through joint ventures, particularly in fast-growing emerging markets which represent over 50% of its sales.
[James T. Areddy & Deborah Ball]
Danone's China Strategy Is Set Back
''The Wall Street Journal'', Page A10, 15 June 2007
Danone signed joint ventures with Al Safi in Saudi Arabia (2001),
Yakult
is a Japanese sweetened probiotic milk beverage fermented with the bacteria strain '' Lacticaseibacillus casei'' Shirota. It is sold by Yakult Honsha, based in Tokyo. It is distributed through convenience stores and supermarkets in single-servin ...
in India (2005) and Vietnam (2006), Alquería in Colombia (2007), and
Mengniu
China Mengniu Dairy Company Limited () is a Chinese manufacturing and distribution company of dairy products and ice cream. The company is headquartered in Hohhot, Inner Mongolia and manufactures dairy products under the ''Mengniu'' brand.
In Ju ...
in China (2013–2014).
[
]
Bangladesh
In November 2005, Franck Riboud met Muhammad Yunus
Muhammad Yunus (born 28 June 1940) is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance ...
, founder of the Grameen Bank
Grameen Bank ( bn, গ্রামীণ ব্যাংক) is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished without requi ...
and later winner of the 2006 Nobel Peace Prize. The two men discussed at length their ideas on the development of poor countries and found that their areas of expertise were complementary. As a result, in 2006, the Grameen Bank and Danone formed a company called Grameen Danone
Grameen Danone Foods, popularly known as Grameen Danone, is a social business enterprise, launched in 2006, which has been designed to provide children with many of the key nutrients that are typically missing from their diet in rural Banglade ...
Foods, a social business
Social business was defined by Nobel Peace Prize laureate Professor Muhammad Yunus and is described in his books.
In these books, Yunus defined a social business as a business:
* Created and designed to address a social problem
* A non-loss, no ...
in Bangladesh.
Grameen Danone Foods Ltd. produces a yoghurt called Shokti Doi containing protein
Proteins are large biomolecules and macromolecules that comprise one or more long chains of amino acid residues. Proteins perform a vast array of functions within organisms, including catalysing metabolic reactions, DNA replication, respo ...
, vitamins
A vitamin is an organic molecule (or a set of molecules closely related chemically, i.e. vitamers) that is an essential micronutrient that an organism needs in small quantities for the proper functioning of its metabolism. Essential nutrien ...
, iron
Iron () is a chemical element with symbol Fe (from la, ferrum) and atomic number 26. It is a metal that belongs to the first transition series and group 8 of the periodic table. It is, by mass, the most common element on Earth, right in f ...
, calcium
Calcium is a chemical element with the symbol Ca and atomic number 20. As an alkaline earth metal, calcium is a reactive metal that forms a dark oxide-nitride layer when exposed to air. Its physical and chemical properties are most similar to ...
, zinc
Zinc is a chemical element with the symbol Zn and atomic number 30. Zinc is a slightly brittle metal at room temperature and has a shiny-greyish appearance when oxidation is removed. It is the first element in group 12 (IIB) of the periodi ...
, and other micronutrients
Micronutrients are nutrient, essential dietary elements required by organisms in varying quantities throughout life to orchestrate a range of physiological functions to maintain health. Micronutrient requirements differ between organisms; for exam ...
aimed to fill nutritional deficits of children in Bangladesh. Shokti Doi is sold for six euro cents, a price that studies found to be affordable for the poorest families. Its pursuit of profitability is based solely on criteria such as improving public health, creating jobs, reducing poverty and protecting the environment. Profits earned by the company are re-invested in expanding and running the business.
India
Dedicated to bringing health through food to as many people as possible, Danone started its nutrition business in India in 2012 through the acquisition of the nutrition portfolio from Wockhardt Group. Danone India offers a range of specialized products across life stages that includes pregnancy, infants, young children as well as adults, under recognized Indian and global brands like Aptamil, Neocate, Farex, Protinex, Dexolac and Nusobee. Headquartered in Mumbai, Danone strives to address the local nutritional needs of Indian consumers through innovation and science that supports healthier choices. In 2018, Danone reduced its product portfolio and discontinued some dairy SKUs to bring a sharper focus on its nutrition offerings.
Israel
In March 1996 Danone signed an agreement to purchase 20 percent of the Strauss Group
Strauss Group Ltd. ( he, שטראוס גרופ בע״מ), formerly known as Strauss-Elite (), is among the largest food products manufacturers in Israel. Strauss Group focuses on dairy products, coffee, water, snacks, salads, and dips. Its su ...
, Israel's second largest food manufacturer. Since the 1970s, Strauss Dairies had a series of partnership and knowledge agreements with Danone.
China
Danone has invested in China since 1987 with the joint venture with Fengxing Milk
Fengxing Milk Co. () is a Chinese dairy company located in Guangzhou, Guangdong Province. The company was established in 1952, with roots dating back to 1926, and is the first dairy company in the city. Fengxing owns numerous dairy farms in Guang ...
in Guangzhou. It is one of Danone's top 5 markets.
Bright Dairy
In 2001, Danone acquired a 5% stake in Bright Dairy and, in March 2005, doubled its shareholding, and again, to 20%, in April 2006, becoming the third largest shareholder after Shanghai Milk Group and S.I. Food.
The parties announced in October 2007 that Danone would divest its stake by selling it to the other two main shareholders at a small profit.[ Bright Dairy said Danone would pay 330m yuan (€31m) to terminate the existing distribution and production agreement with it.
]
Wahaha
The Hangzhou Wahaha Group
The Hangzhou Wahaha Group Co., Ltd. (WHH; ) is a private group of companies, and the largest beverage producer in China. The company is headquartered in Hangzhou, Zhejiang province. "Wa ha ha" signifies "laughing child".
Wahaha has roughly 150 ...
, the largest beverage producer in China, and Danone entered into a dairy products joint venture in 1996, in which Danone held 51%. It was hailed by ''Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' magazine as a "showcase" joint venture.
Yet in 2005, Danone noted that alongside the 39 structures of the joint venture, 60 factories and distribution companies produce and sell beverages illegally under the Wahaha brand. Danone made several attempts to take a stake in the Wahaha companies external to the joint venture, but was rebuffed by Wahaha's General Manager Zong Qinghou. Danone and Zong Qinghou had signed a deal in December 2006 allowing Danone to buy a majority stake in these non-JV operations. However, Zong had second thoughts about the deal and reneged, claiming the offer was underpriced and held out for a higher price from Danone.[签约与悔约(regrets]
''Wahaha – atypical commercial dispute''
, ''Caijing
''Caijing'' is an independent magazine based in Beijing that covers societal, political, and economic issues, with a focus on civil rights, public affairs, and business.James F. Scotton"New Media for a New China,"John Wiley & Sons, 8 March 2010, ...
'' Issue 185, 14 May 2007
The dispute took on the shape of a trademark dispute, and Danone filed for arbitration in Stockholm
Stockholm () is the Capital city, capital and List of urban areas in Sweden by population, largest city of Sweden as well as the List of urban areas in the Nordic countries, largest urban area in Scandinavia. Approximately 980,000 people liv ...
on 9 May 2007.Xinhua
Xinhua News Agency (English pronunciation: )J. C. Wells: Longman Pronunciation Dictionary, 3rd ed., for both British and American English, or New China News Agency, is the official state news agency of the People's Republic of China. Xinhua ...
Wahaha says its arbitration application accepted over trademark dispute with Danone
18 June 2007 On 4 June, Danone filed suit in Los Angeles Superior Court against Ever Maple Trading and Hangzhou Hongsheng Beverage Co Ltd, companies controlled by Zong, his wife, and daughter.
, Agence France-Presse
Agence France-Presse (AFP) is a French international news agency headquartered in Paris, France. Founded in 1835 as Havas, it is the world's oldest news agency.
AFP has regional headquarters in Nicosia, Montevideo, Hong Kong and Washington, D.C ...
story, France 24, 18 June 2007
In 2009, an agreement was reached between the two parties. Danone left the Danone-Wahaha joint venture and sold its shares (51%) to its former Chinese partner.
Mengniu
On 20 May 2013, Danone announced a strategic investment (4.0%) in Mengniu, the top dairy products company in China, through an agreement with COFCO (the state-owned largest food company in China a majority shareholder in Mengniu). Later on, Danone raised its interest in Mengniu from 4.0% to 9.9%. In 2016, Danone is Mengniu's second shareholder.
In addition, in May 2013, a joint-venture was created between Danone and Mengniu to grow the fresh dairy product category.
On 31 October 2014, Danone, Mengniu and Yashili announced that they had signed an agreement allowing Danone to take part in a private placement by Yashili totalling €437 million, at a price of HK$3.70 per share. Upon completion of the subscription, Mengniu and Danone respectively held 51.0% and 25.0% equity interest in Yashili.
Russia
On 18 June 2010, Danone partnered with Unimilk, one of Russia's main milk producers. Danone and Unimilk merged their fresh dairy products activities in Russia, Ukraine, Kazakhstan and Belarus. The joint-venture gave birth to the number one dairy products company in this region. Russia became one of the five most important markets for Danone.
In October 2022, Danone announced the start of the process of transferring its Russian segment to new owners. By this point, Russia provided about 5% of the company's total revenue.
Africa
In June 2012, Danone raised its interest in Centrale Laitière (leader of the dairy products market in Morocco) to 67.0%. Centrale Laitière is Danone's first franchise ever: the companies have worked together since 1953.
In October 2013, Danone teamed up with Abraaj Group to acquire FanMilk International, the leading manufacturer and distributor of frozen dairy products and juices in Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
, Togo
Togo (), officially the Togolese Republic (french: République togolaise), is a country in West Africa. It is bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, where its c ...
, Nigeria
Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
, Burkina Faso
Burkina Faso (, ; , ff, 𞤄𞤵𞤪𞤳𞤭𞤲𞤢 𞤊𞤢𞤧𞤮, italic=no) is a landlocked country in West Africa with an area of , bordered by Mali to the northwest, Niger to the northeast, Benin to the southeast, Togo and Ghana to the ...
, Benin
Benin ( , ; french: Bénin , ff, Benen), officially the Republic of Benin (french: République du Bénin), and formerly Dahomey, is a country in West Africa. It is bordered by Togo to the west, Nigeria to the east, Burkina Faso to the north ...
and Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
.
In July 2014, Danone announced the acquisition of a 40% interest in Kenya's Brookside, East Africa's leading dairy products group.
Corporate social responsibility
Danone operates several funds including: danone.communities, created in 2007 to finance social business, the Danone Ecosystem Fund, created in 2009 to provide support to Danone partners including farmers, subcontractors, and vendors, and Livelihoods, created in 2011 in order to finance environment-related projects (such as peasant agriculture, deforestation, access to energy in emerging countries) and in return provide investors with carbon credits with strong social intensity.
Danone's corporate social responsibility
Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
programs were influenced by former CEO, Antoine Riboud, and a speech he gave on 25 October 1972 known as the "Marseilles speech".
In this speech, he stated that growth should not take place without corporate social responsibility. He was the first CEO to publicly state that human and environment aspects of a company should be take into account. These ideas laid the ground to Danone's dual project (economic and social).
Danone Institute
The Danone Institute is a non-profit organization
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
established to promote research
Research is "creativity, creative and systematic work undertaken to increase the stock of knowledge". It involves the collection, organization and analysis of evidence to increase understanding of a topic, characterized by a particular att ...
, information and education about nutrition
Nutrition is the biochemical and physiological process by which an organism uses food to support its life. It provides organisms with nutrients, which can be metabolized to create energy and chemical structures. Failure to obtain sufficient n ...
, diet and public health. One of the organization's main objectives was to increase nutrition knowledge amongst medical professionals, educators and parents.
The company set up its first Institute in 1991 in Paris, France, and officially launched as a private non-profit organization in 1997.
The institute is led by nutrition experts and Danone company executives.
Danone Institutes around the world
By 2007, Danone had set up 18 institutes in countries around the world to develop programs that address local public health issues. The institutes are located in Belgium, Canada, China, the Czech Republic, France, Germany, Indonesia, Israel, Italy, Japan, Mexico, Poland, Russia, Spain, the United States, and Turkey.
They operate under the aegis of the Danone Institute International. The Danone Institute International is responsible for steering the network, and encouraging a continual exchange between the various countries.
Today, more than 200 experts in diet
Diet may refer to:
Food
* Diet (nutrition), the sum of the food consumed by an organism or group
* Dieting, the deliberate selection of food to control body weight or nutrient intake
** Diet food, foods that aid in creating a diet for weight loss ...
and nutrition
Nutrition is the biochemical and physiological process by which an organism uses food to support its life. It provides organisms with nutrients, which can be metabolized to create energy and chemical structures. Failure to obtain sufficient n ...
are involved in this international network.
Each institute is composed of a board of directors and a scientific council. Each board includes 8 members. The board members are responsible for setting the strategic direction and budget for the organization. The scientific council that is composed of from 6 to 10 members, takes future programmatic decisions.
The institutes develop educational programs in their countries to deal with local health and nutrition issues. Each institute therefore develops its own program in order to be relevant in their environment. For instance, the Czech Danone Institute provides a fund to support research, development and education in nutrition, and scholarships abroad.
Each local Danone Institute develops specific programs including:
* Support research programs: scholarships, grants, awards, prizes
* Publications of research findings relating to health and nutrition
* Organization of scientific conferences
* Publication of newsletters and books for professionals (e.g., health care professionals, educators, journalists)
* Organization of workshops, training and educational sessions for professionals
* Production of pedagogic material, booklets, television and radio programs, PC games for parents, children...
* Spread the knowledge to the public
Throughout the world, the Danone Institutes continue to be non-profit organizations.
The Danone Institutes gather internationally renowned scientists in diet and nutrition from independent organizations (e.g.: universities, research centers).
From 1991 to 2006, more than 40 prizes and awards have been attributed for more than €600,000. Over 140 events have gathered more than 30,000 health care professionals. And 75 publications have been published. More than 70 programs towards the public have been organized.
To date, Danone Institutes have funded more than 900 research projects. This represents a global budget of €16 million. They have set up dozens of educational programs. 100 symposia have been launched.
Danone Institute International
The Danone Institute International was established in 2004 to gather together the 18 Danone Institutes. Its goal is to develop large-scale international programs. It also aims at encouraging the sharing of the knowledge between the local institutes. It facilitates cooperation, collaboration and exchange between scientists.
Danone Institute International is a non-profit organization originally established with funding from Danone. The association promotes the exchange of information related to the relationship between diet, nutrition and health.
The Danone Institute International comprises more than 220 scientific experts, and may be considered as a think tank
A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-governmenta ...
. This international network gathers renowned scientists from various fields such as clinical nutrition Clinical nutrition centers on the prevention, diagnosis, and management of nutritional changes in patients linked to chronic diseases and conditions primarily in health care. Clinical in this sense refers to the management of patients, including no ...
, pediatric medicine
Pediatrics ( also spelled ''paediatrics'' or ''pædiatrics'') is the branch of medicine that involves the medical care of infants, children, adolescents, and young adults. In the United Kingdom, paediatrics covers many of their youth until the ...
, microbiology
Microbiology () is the scientific study of microorganisms, those being unicellular (single cell), multicellular (cell colony), or acellular (lacking cells). Microbiology encompasses numerous sub-disciplines including virology, bacteriology, prot ...
, gastroenterology
Gastroenterology (from the Greek gastḗr- “belly”, -énteron “intestine”, and -logía "study of") is the branch of medicine focused on the digestive system and its disorders. The digestive system consists of the gastrointestinal tract ...
, psychology
Psychology is the scientific study of mind and behavior. Psychology includes the study of conscious and unconscious phenomena, including feelings and thoughts. It is an academic discipline of immense scope, crossing the boundaries betwe ...
...
The Danone Institute International produces publications, supports research via grants, programs and a prize. The DII also organizes international academic conferences and symposia.
The Danone International Prize For Nutrition is a cornerstone in the work of the Danone Institute International.
Danone International Prize for Nutrition
The Danone International Prize for Nutrition is an award established in 1997 by the Danone Institute International, presented every two years to honour individuals or teams that have advanced the science of human nutrition.
The prize aims at encouraging nutrition research and promoting the public's understanding of the importance of this field.
This award is one of the most respected awards within the field of nutritional research. Many leading scientists received this award, that recognizes their accomplishments.
The Danone International Prize for Nutrition
Danone S.A. () is a French multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are ...
is worth €120,000. The prize is awarded every two years by the Danone Institute International and organized with the support of the French organization Fondation pour la Recherche Médicale.
The Danone International Prize for Nutrition recognizes a single researcher or a research team as leading a major step in nutrition, developing novel concepts, including research fields with potential application for populations.
The jury consists of up to nine members, including one member of the Fondation pour la Recherche Médicale. 50% of the jury members come from the Danone Institute International or the Danone Institutes. The jury selects one winner by a secret vote. In case of a tie, the chair's vote counts as two votes.
Danone Institute International selected in 2007 Friedman through a process involving more than 650 applicants worldwide. Candidates must be employed by a not-for-profit institution and actively involved in research. Laureates are chosen after an independent and international selection procedure.
This prize has been renamed the Danone International Prize for Alimentation in 2018.
Prize winners:
Source
Danone International
*2016 Philip Calder, ''for his outstanding work on nutrition and immunity''.
*2013 Gökhan S. Hotamisligil
Gökhan S. Hotamisligil ( tr, Gökhan Sıddık Hotamışlıgil; born June 24, 1962) is a Turkish Americans, Turkish-American Physician-scientist, physician scientist; James Stevens Simmons Chair of Genetics and Metabolism at Harvard T.H. Chan Sc ...
, Harvard School of Public Health
The Harvard T.H. Chan School of Public Health is the public health school of Harvard University, located in the Longwood Medical Area of Boston, Massachusetts. The school grew out of the Harvard-MIT School for Health Officers, the nation's first ...
, ''for his outstanding research in immunology and metabolic diseases''.
*2011 Jeffery I. Gordon, Center for Genome Sciences and Systems Biology, Washington University School of Medicine, St. Louis, ''for his outstanding contribution to scientific research on the human gut microbiome, diet and nutritional status''.
*2009 Johan Auwerx, École Polytechnique Fédérale de Lausanne
École may refer to:
* an elementary school in the French educational stages normally followed by secondary education establishments (collège and lycée)
* École (river), a tributary of the Seine flowing in région Île-de-France
* École, Savoi ...
, ''for his research in molecular nutrition''.
*2007 Jeffrey M. Friedman, Rockefeller University
The Rockefeller University is a private biomedical research and graduate-only university in New York City, New York. It focuses primarily on the biological and medical sciences and provides doctoral and postdoctoral education. It is classif ...
and Howard Hughes Medical Institute
The Howard Hughes Medical Institute (HHMI) is an American non-profit medical research organization based in Chevy Chase, Maryland. It was founded in 1953 by Howard Hughes, an American business magnate, investor, record-setting pilot, engineer, fil ...
; ''for research on the role of genetics and leptin
Leptin (from Ancient Greek, Greek λεπτός ''leptos'', "thin" or "light" or "small") is a hormone predominantly made by adipose cells and enterocytes in the small intestine that helps to regulate Energy homeostasis, energy balance by inhib ...
, a hormone he discovered, in body-weight regulation''.
*2005 David J. P. Barker, epidemiologist at the Developmental Origins of Health and Disease Division Research Centre of Southampton University
, mottoeng = The Heights Yield to Endeavour
, type = Public research university
, established = 1862 – Hartley Institution1902 – Hartley University College1913 – Southampton University Coll ...
, UK and at the Heart Research Centre, Oregon Health and Science University
Oregon () is a state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington, while the Snake River delineates much of its eastern boundary with Idaho. T ...
, US, ''for the Barker Early Origins Hypothesis, also known as the fetal origins hypothesis or the thrifty phenotype hypothesis''.
*2003 Ricardo Bressani
Cesar Ricardo Bressani Castignoli (28 September 1926 – 30 January 2015) was a Guatemalan food scientist. Born in Guatemala City, he received a bachelor of science in chemical engineering degree from the University of Dayton in 1948. In 1951, ...
, ''for his life-time commitment to maximise the understanding of the nutritional potential and limitations of local basic foods''
*2001 Alfred Sommer
Alfred (Al) Sommer (born October 2, 1942) is a prominent American ophthalmologist and epidemiologist at the Johns Hopkins Bloomberg School of Public Health. His research on vitamin A in the 1970s and 1980s revealed that dosing even mildly vitamin ...
and team from the School of Hygiene and Public Health at Johns Hopkins University
Johns Hopkins University (Johns Hopkins, Hopkins, or JHU) is a private university, private research university in Baltimore, Maryland. Founded in 1876, Johns Hopkins is the oldest research university in the United States and in the western hem ...
, ''for his work on Vitamin A deficiency''
*1999 Leif Hallberg, ''for his work on iron metabolism''
*1997 Vernon R. Young
Vernon Robert Young (November 15, 1937 – March 30, 2004) was an expert on protein and amino acid requirements and researched how the human body processes nutrients into protein. Young was a principal organizer of amino acid Workshops sponsore ...
, ''for his work on protein and amino acids metabolism''
Global summit on the health effects of yogurt
In 2012, the Danone Institute International in collaboration with the American Society for Nutrition
The American Society for Nutrition (ASN) is an American society for professional researchers and practitioners in the field of nutrition. ASN publishes four journals in the field of nutrition. It has been criticized for its financial ties to the ...
(ASN) organized an international working group
A working group, or working party, is a group of experts working together to achieve specified goals. The groups are domain-specific and focus on discussion or activity around a specific subject area. The term can sometimes refer to an interdis ...
to examine the health effects
Health effects (or health impacts) are changes in health resulting from exposure to a source. Health effects are an important consideration in many areas, such as hygiene, pollution studies, occupational safety and health, ( utrition and health sc ...
of yogurt. They communicated their scientific conclusion to health care professionals and the public. One year later, the ASN and the Danone Institute International joined forces to launch the first global summit on the health effects of yogurt.
This event aims at evaluating the state of science as concerns yogurt consumption
Consumption may refer to:
*Resource consumption
*Tuberculosis, an infectious disease, historically
* Consumption (ecology), receipt of energy by consuming other organisms
* Consumption (economics), the purchasing of newly produced goods for curren ...
and public health
Public health is "the science and art of preventing disease, prolonging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals". Analyzing the det ...
.
The first summit took place in 2013 in Boston
Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
. It featured international experts in medicine
Medicine is the science and practice of caring for a patient, managing the diagnosis, prognosis, prevention, treatment, palliation of their injury or disease, and promoting their health. Medicine encompasses a variety of health care pract ...
and nutrition
Nutrition is the biochemical and physiological process by which an organism uses food to support its life. It provides organisms with nutrients, which can be metabolized to create energy and chemical structures. Failure to obtain sufficient n ...
. Since that time, summits have been held every year.
Yogurt in Nutrition Initiative for a balanced diet
In 2013, the Danone Institute International, the American Society for Nutrition
The American Society for Nutrition (ASN) is an American society for professional researchers and practitioners in the field of nutrition. ASN publishes four journals in the field of nutrition. It has been criticized for its financial ties to the ...
(ASN) and the Nutrition Society (NS) launched the Yogurt in Nutrition Initiative for a balanced diet. This program aims at examining the health effects
Health effects (or health impacts) are changes in health resulting from exposure to a source. Health effects are an important consideration in many areas, such as hygiene, pollution studies, occupational safety and health, ( utrition and health sc ...
of yogurt
Yogurt (; , from tr, yoğurt, also spelled yoghurt, yogourt or yoghourt) is a food produced by bacterial Fermentation (food), fermentation of milk. The bacteria used to make yogurt are known as ''yogurt cultures''. Fermentation of sugars in t ...
, encouraging research around yogurt as part of a healthy diet
A healthy diet is a diet that maintains or improves overall health. A healthy diet provides the body with essential nutrition: fluid, macronutrients such as protein, micronutrients such as vitamins, and adequate fibre and food energy.
A healthy ...
and communicating scientific information toward health care
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...
professionals and the public.
Through this project, the Danone Institute International plans to organize worldwide conferences to share researchers' findings. From 2013, the Yogurt in Nutrition Initiative for a balanced diet co-organizes every year Global Summit on the Health Effects of Yogurt.
The Danone Institute International in collaboration with the American Society for Nutrition
The American Society for Nutrition (ASN) is an American society for professional researchers and practitioners in the field of nutrition. ASN publishes four journals in the field of nutrition. It has been criticized for its financial ties to the ...
and the International Osteoporosis Foundation
The International Osteoporosis Foundation (IOF), headquartered in Nyon, Switzerland, is a non-governmental organization (NGO) founded in 1998. It was formed from the merger of the European Foundation for Osteoporosis, founded in 1987, and the In ...
also organizes the Yogurt in Nutrition Award. This prize is offered by the Yogurt in Nutrition Initiative for a balanced diet. This award, valued at US$30,000, supports projects focused on the role of yogurt in the prevention and management of diseases. It finances research programs for two years. It recognizes individuals or research teams from public organizations, universities or hospitals.
Controversies
2005–2006: the Pepsico acquisition case
Due to its narrow focus and relatively small size, Danone is potentially an attractive takeover target for its competitors, namely Nestlé
Nestlé S.A. (; ; ) is a Switzerland, Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other me ...
and Kraft Foods. In mid-July 2005, the share price of Danone rose 20% within two weeks on rumours of a bid approach by PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
, although this intention was denied. Upon realising that a takeover of a national treasure such as Danone by a foreign company was indeed possible in the capital markets, the " economically patriotic" French government stepped in by drafting a law to protect companies in "strategic industries" such as Danone from takeover. This has been dubbed the "Danone Law".
Speculation was renewed once again in mid-2006, when PepsiCo declared its intention to grow significantly in France through a sizeable non-hostile acquisition, and Kraft was also reported in ''Le Figaro
''Le Figaro'' () is a French daily morning newspaper founded in 1826. It is headquartered on Boulevard Haussmann in the 9th arrondissement of Paris. The oldest national newspaper in France, ''Le Figaro'' is one of three French newspapers of reco ...
'', a French daily newspaper, as not having ruled out an acquisition on French soil. The stock market apparently marked down the possibility of a bid by PepsiCo following Danone's acquisition of Numico
Nutricia is a Danone brand that specialises in therapeutic food and infant formula, including medical nutrition for babies with specific needs.
The former company, N.V. Nutricia., was established in The Netherlands by brothers Jan and Martinus v ...
.
2010–2013
In the 2010s, reports indicated that Danone engaged in unethical marketing of infant formula in China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
,[ ]Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
,[ ]Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
,[ and ]India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
.
India
In the early 2010s, Nutricia India (Danone) purchased Wockhardt which thereby provided Danone with an entry to India's infant nutrition market. Nutricia later ordered and scheduled an external audit of payments made and invoices received from March through August 2013 and found no payments to doctors. However, critics contended the company directed the course of the audit, and more importantly, scheduled the audit so that it did not cover the crucial handover period. In fact, it was scheduled nearly a year after the purchase. A policy director for Baby Milk Action stated that Nutricia "seems to be using the audit as a cover."[Danone Group 'trying to whitewash' Nutricia India marketing practices: BMA (Baby Milk Action)](_blank)
''Dairy Reporter'', Mark Astley, 29 April 2014. Danone's "Green Book" includes the company's ethics and code of conduct, such as disallowing payments to doctors for recommending formula. More fully, it is entitled Danone Policy for the Marketing of Foods for Infants and Young Children.
India passed a law pertaining to Infant Milk Substitutes (IMS) in 1992 and strengthened this law in 2003. These prohibit any kind of advertisement of infant formula for children 0–2, as well as prohibit monetary benefits to doctors for recommending formula. Still, major companies including Danone have been criticized for sponsoring such things as nutritional conferences and web platforms for doctors. (Other companies include Nestle, Abbott, and Mead Johnson.)[Despite ban, marketing of breast-milk substitutes continues](_blank)
''The Times of India'', Rupali Mukherjee, 17 May 2018.
Dexolac is the name of Danone's infant milk substitute product. Overall in India, approximately 50% of infants under six months of age are exclusively breastfed, and 50% are not.
China
In October 2012, a Save the Children
The Save the Children Fund, commonly known as Save the Children, is an international non-governmental organization established in the United Kingdom in 1919 to improve the lives of children through better education, health care, and economic ...
survey was conducted in the cities of Hohhot, Beijing, Jinan, Shanghai, Nanjing, and Shenzhen. Sixty mothers of infants 0–6 months were interviewed in each city. 40% of the mothers interviewed said they had received formula samples. Of these, 60% were provided by company representatives, and over one-third by healthcare workers. The mothers reported that samples were provided by (in order of frequency): Dumex (Danone, and since May 2016 Yashili), Enfamil (Mead Johnson), Wyeth, Abbott, Nestlé, Friso, Ausnutria and Bei-yin-mei.[SUPERFOOD FOR BABIES: How overcoming barriers to breastfeeding will save children's lives]
, Save the Children (UK version), 2013, Ch. 6 "breast-milk substitute companies facing conflict of interest," page 35 (47 in PDF), footnote 31 describing the survey includes " . . Within each city, 60 mothers of infants aged 0–6 months were interviewed (through randomised selection within the waiting areas) in one MCH Hospital, one level-3 comprehensive (the highest level in China) hospital MCH Division, one level-2 comprehensive hospital MCH Division – ie, 20 mothers with babies 0–6 months old from each facility were interviewed." The overall 2013 Save the Children report which includes this 2012 survey states, "If new mothers are given free samples to feed to their babies it can start a vicious circle that undermines their own ability to breastfeed. An infant satiated with formula may demand less breast milk, so the mother produces less, and that can result in her losing confidence in her ability to breastfeed."[
]
Indonesia subsidiary
In February 2013 ''The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'' reported that up until 2011, Danone subsidiary Sari Husada had midwives sign contracts to receive financial payments for selling a certain number of boxes of baby formula. According to Danone, this no longer happens, and has been replaced by a scheme which runs training for midwives. However, the main difference appears to be a change from cash to merchandise such as televisions or laptops, and often including items which are needed in the midwives' practices, such as oxygen canisters, TENS machines, and nebulisers. ''The Guardian'' has seen a spreadsheet detailing the number of new mothers contacted, the amount of 0–6 months formula sold, and the proportion of their target this represents. Danone commented: "That may still be happening, that's something we need to address."[Baby health crisis in Indonesia as formula companies push products]
''The Guardian
''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'', 15 February 2013
This same article reported that Sari Husada (Danone) had links throughout the Indonesian medical system. For example, Sari Husada sponsored professional associations, paid doctors for running seminars for midwives, and even sponsored midwifery awards which were then presented by the Indonesian Minister for Women's Empowerment and the Protection of Children.[
There are two potential harms to promoting infant formula in poorer communities: (1) the parents and families may not have dependable access to clean water, and (2) the ongoing cost is such a significant part of the family budget that parents are highly motivated to attempt to "stretch" the product, with risk of malnourishment to infant or child. An Indonesian pediatrician stated, "Selling formula is like the killing fields, in my opinion. The babies will die of diarrhoea and they will die of malnutrition."][
]
Turkey marketing campaign
In June 2013 the organisation was accused in Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
of "misleading mothers with a marketing campaign that warned they might not be providing enough breast milk to their babies nd suggestingmothers use its powdered baby milk to make up any shortfall." Danone responded that it "based its advice on WHO
Who or WHO may refer to:
* Who (pronoun), an interrogative or relative pronoun
* Who?, one of the Five Ws in journalism
* World Health Organization
Arts and entertainment Fictional characters
* Who, a creature in the Dr. Seuss book ''Horton Hear ...
guidance" and claimed that both the WHO and UNICEF
UNICEF (), originally called the United Nations International Children's Emergency Fund in full, now officially United Nations Children's Fund, is an agency of the United Nations responsible for providing Humanitarianism, humanitarian and Devel ...
"endorsed the campaign." The WHO said Danone did not have permission to use its logo and asked Danone to remove its name from the company's marketing materials within 14 days while Ayman Abulaban, the UNICEF representative for Turkey, said: "The Unicef Turkey office has not endorsed this campaign." UNICEF also requested that their name be removed from marketing materials.
Fonterra New Zealand alert
Following a statement by the New Zealand government and Fonterra
Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by around 9,000 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exce ...
on 2 August 2013 warning that batches of ingredients supplied by Fonterra to four Danone plants in Asia-Pacific might be contaminated with ''Clostridium botulinium'' bacteria, Danone recalled selected infant formula products from sale in eight markets (New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
, China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
, Vietnam
Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...
, Cambodia
Cambodia (; also Kampuchea ; km, កម្ពុជា, UNGEGN: ), officially the Kingdom of Cambodia, is a country located in the southern portion of the Indochinese Peninsula in Southeast Asia, spanning an area of , bordered by Thailand t ...
and Thailand
Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is bo ...
) as a precautionary measure.
The alert was lifted on 28 August when New Zealand Ministry for Primary Industries concluded after several weeks of tests that there was no ''Clostridium botulinium'' in any of the batches concerned. None of the many tests conducted by Danone before and after this period showed any contamination.
On 8 January 2014, Danone announced its decision to terminate its existing supply contract with Fonterra and make any further collaboration contingent on a commitment by its supplier to full transparency and compliance with the food safety procedures applied to all products supplied to Danone. Danone won damages of €105 million from Fonterra.
Gallery
File:Dannon Low Fat Yogurt Parfait 1 (15876174571).jpg, Yogurt parfait
File:Dannon Low Fat Yogurt Parfait 2 (15876174771).jpg, Yogurt parfait
File:Natillas con caramelo.jpg, Natillas
File:ダノンBIO チロルチョコ付き (128360399).jpg, Yogurt with confections (Japan)
File:Oatmilk 1.jpg, Silk oat milk
Oat milk is a plant milk derived from whole oat (''Avena spp.'') grains by extracting the plant material with water. Oat milk has a creamy texture and mild oatmeal-like flavor, and is manufactured in various flavors, such as sweetened, unsweetened ...
References
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{{DEFAULTSORT:Danone
French brands
Food and drink companies established in 1919
Dairy products companies of France
Multinational companies headquartered in France
Multinational dairy companies
Multinational food companies
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CAC 40
Companies in the Euro Stoxx 50
Companies listed on Euronext Paris
French companies established in 1919
Yogurt companies