Danone Restores Consumer Confidence as It Distances from Nestlé and Unilever

Danone has strategically positioned itself against giants Nestlé and Unilever by capturing market share. The post-pandemic era witnessed aggressive pricing influenced by inflation, resulting in a fallback of consumers, erosion of market share, and increasing investor pressure.

However, Danone appears to have plotted a successful course, leveraging local capabilities, decentralizing decision-making, and shifting to value-based pricing. This has not only strengthened their relationship with retailers but also restored consumer trust, culminating in consistent results for 2024.

Experts from Alpha Value highlight Danone's well-positioned stance to meet its fiscal 2025 guidance. Danone projects a 3-5% comparable growth in revenue, aligning with its mid-term forecast.

The CEO of Danone, Antoine de Saint-Affrique, prioritizes volume growth, which has been strategically essential as competitors like Nestlé and Unilever strive to regain market share lost to more cost-effective private labels during the inflation surge. Notably, Danone achieved a 4.2% volume/mix growth in Q4 2024, surpassing market expectations of 3.4%.

Despite challenges in the fresh dairy segment, which constitutes around 40% of Danone's sales, facing stiff competition in developed countries, Danone's 'Renew' strategic plan, launched in 2022, aims for sustainable and profitable growth. With continuous transformation, Danone closed the first chapter of Renew with significant sales growth of 4.3% comparable growth, consistent volume/mix improvements, and a commitment to delivering health through food using science and innovation.

The 'Renew' plan also underscores Danone's focus on its high-protein platform, with brands like YoPro and Oikos achieving substantial growth, exceeding the 1 billion euro milestone.

Heading into 2025, Danone continues to focus on health through food innovation, expanding geographically and solidifying its market presence.