Danone

Danone. Danone is a French multinational food-products corporation headquartered in Paris and listed on the Euronext Paris. It holds a leading global position in several key categories, including fresh dairy products, plant-based alternatives, bottled water, and specialized medical nutrition. The company's portfolio features internationally recognized brands such as Activia, Alpro, and Evian, operating across more than 120 markets with a stated mission focused on bringing health through food to as many people as possible.

History

The company was founded in 1919 in Barcelona by Isaac Carasso, a Sephardic Jewish doctor who began producing yogurt using Lactobacillus bulgaricus and Streptococcus thermophilus cultures. He named the product "Danone" after his son, Daniel. In 1929, Daniel Carasso established the business in France, founding the Société Parisienne du Yoghourt Danone. Significant expansion began post-World War II; the company merged with the fresh cheese producer Gervais in 1967 to form Gervais Danone. A pivotal merger occurred in 1973 with the glassmaker BSN, which later divested its glass operations to focus entirely on food, rebranding as Groupe Danone in 1994. Major acquisitions have shaped its evolution, including the purchase of The Coca-Cola Company's European bottling interests in 1989, Evian in 1970, LU biscuit in 1986, and the Wahaha Group joint venture in 1996. Under the leadership of CEOs like Franck Riboud and later Emmanuel Faber, the company streamlined its portfolio, selling its biscuit division to Kraft Foods in 2007 and its beer business to Heineken N.V. in 2008 to concentrate on health-focused categories.

Products and brands

Danone's operations are organized into four key business segments: Essential Dairy & Plant-Based, Waters, and Specialized Nutrition. The Essential Dairy & Plant-Based division includes a vast array of yogurt, fermented milk products, and probiotic drinks under brands like Actimel, DanActive, and Oikos, alongside the leading plant-based brand Alpro. Its Waters division is anchored by iconic spring water brands such as Evian and Volvic, and includes regional brands like Aqua in Indonesia. The Specialized Nutrition branch is split into Early Life Nutrition, with brands including Aptamil and Nutricia, and Medical Nutrition, providing foods for specific clinical conditions under the Fortimel and Neocate brands. This diversified portfolio allows it to compete directly with rivals like Nestlé, Lactalis, and PepsiCo.

Corporate affairs

Danone is governed by a Board of directors chaired by Gilles Schnepp, with Antoine de Saint-Affrique serving as Chief Executive Officer since 2021. The company is a constituent of the CAC 40 index on the Euronext Paris stock exchange. Its global research and development network includes major centers in Utrecht, Paris, and Shanghai. Danone has engaged in significant joint ventures, notably the dissolved partnership with Hangzhou Wahaha Group in China, which ended in a protracted legal dispute. In 2021, under pressure from investors including Artisan Partners and Bluebell Capital Partners, the board separated the roles of Chairman and CEO, leading to the departure of then-CEO Emmanuel Faber. The company's headquarters are located at Boulevard Haussmann in Paris.

Sustainability and social responsibility

Danone has integrated environmental and social goals into its corporate governance, notably becoming an Entreprise à mission under French law in 2020, legally enshrining its social objectives. Its "One Planet. One Health" operational framework focuses on sustainable agriculture, water stewardship, and circular packaging. The company is a founding member of the Global Alliance for Improved Nutrition and supports farming initiatives like the Danone Ecosystem Fund. It has set targets for achieving carbon neutrality across its full value chain by 2050, certified by the Science Based Targets initiative, and aims for 100% recyclable, reusable, or compostable packaging. Partnerships with organizations like the World Wildlife Fund and the Ellen MacArthur Foundation underpin these efforts.

Controversies and criticism

The company has faced several significant controversies. Its aggressive marketing of infant formula in the 1970s drew criticism from groups like the International Baby Food Action Network and led to its inclusion in the ongoing Nestlé boycott. In 2021, a police raid on its offices in Indonesia was part of an investigation into alleged corruption related to permits for its Aqua brand. Danone has also been scrutinized for the environmental impact of its single-use plastic bottles and its water extraction practices near Evian-les-Bains, facing legal challenges from local associations. Additionally, its sponsorship and partnership deals, such as with the International Olympic Committee, have sometimes attracted criticism regarding the alignment of its health messaging with the promotion of sugary products.

Category:Food and drink companies of France Category:Companies listed on Euronext Paris Category:Manufacturing companies established in 1919