![]() ![]() In 2022 as a whole, commodity dairy prices went up 19.6% from 2021, registering the highest annual prices average on record since 1990, according to the UN FAO. In Danone’s recent third-quarter earnings call, Juergen Esser, chief financial, technology and data officer, highlighted that the French dairy giant only transferred two-thirds of its inflation to the retail channel. In comparison, the sales volume was up 1% as the company increased prices to offset inflationary pressures and drive growth. In Region Americas, the bigger brands of Danone showcased double-digit growth, leading to a Q3 sales growth of 11.3%. The segment is made up of the Horizon Organic and Wallaby. In its Q3 financial results, the French company revealed that it was working on having “fewer, sharper and complementary brands,” eliminating “overlaps and cannibalization.” Danone said in a statement it is exploring strategic options, including a potential sale, for its organic dairy business in the U.S. “We are confident that exploring strategic options for these brands will enable them to get the focus and resources they need and therefore allow them to maximize their potential and unlock further growth,” notes Saint-Affrique.ĭanone insists that Horizon Organic and Wallaby are strong brands in the US organic dairy category, with a portfolio of organic dairy products, including milk, creamers & whiteners, yogurt, cheese and butter.īut it admits they represent approximately 3% of Danone’s global revenues and “had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin in 2022.” “That said, seen through the lens of our Renew Strategy, which requires us to stay disciplined in how we allocate our resources, they fall outside our priority growth areas of focus,” he continues.Ī sale will be the most probable outcome as Saint-Affrique declared in his first months as CEO that 10% of Danone’s portfolio was up for “rotation.” “Both Horizon Organic and Wallaby are strong, much-loved brands with compelling growth opportunities,” he says. Danone is considering a sale of its US organic yogurt business Wallaby and its organic milk one Horizon Organic as part of an on-going review strategy for the French dairy giant.ĬEO Antoine de Saint-Affrique underscores that the two brands are not part of the French business main growth plans and are now under strategic review as part of his overhaul of Danone since taking the helm in 2021. ![]()
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