Danone Promotes Plant-Based Milk in Belgium With Lower Prices Amid Price Discrepancy Concerns

A recent report by NGO ProVeg International highlighted that, on average, plant-based alternatives carried a 25% price premium compared to traditional meat or dairy products in 2023, indicating a decrease from the 53% premium observed in 2022.

Danone's campaign focuses on its Alpro Oat and Almond products, with a lower recommended retail price and promotional pricing of up to €2/$2.14 per carton. The goal is to encourage more consumers to try Alpro's plant-based offerings and contribute to the adoption of dairy alternatives among those deterred by higher prices. The campaign is set to run for six weeks, and its success in influencing long-term shopping trends will be evaluated in six to nine months.

Despite the price challenges, Danone reports positive momentum in its Essential Dairy and Plant-based (EDP) business, including Alpro, with a like-for-like sales increase of 6.3% in Q3 and 7.2% in the first nine months of 2023 compared to the same period last year. The Renew Danone initiative, aimed at restoring growth and creating sustainable value, is making sequential progress, particularly in the EDP Europe division.

While Danone is actively promoting plant-based alternatives in Belgium, it faces challenges in its Russian subsidiary, where it no longer retains control despite being the legal owner. The Russian authorities assumed control in July 2023, impacting sales, along with currency depreciation and other factors.