кейси для індивідуальної роботи 2014 н.р. / Danone, Groupe in Packaged Food (World)

SCOPE OF THE REPORT

Scope

 This profile on Danone, Groupe covers the company's packaged food operations, focusing on its growth prospects for the 2011-2016 period.

2011 Packaged Food US$2,114,879 mn rsp

Disclaimer

Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors.

Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies' opinions, reader discretion is advised.

Danone has been consolidating its market positions of its streamlined operations and has been focusing on geographic and category expansion via a number of joint venture agreements, acquisition and the merger of its regional fresh dairy operations with Unimilk of Russia. The group is also facing intensified competition in its core health and wellness arena and the challenge of the lacklustre business environment with the negative impact on consumers' purchasing power in core developed markets.

€ mn

Danone is strong player in its core categories

Danone is the sixth largest packaged food company in the world, with a market value share of over 1% and global retail sales of US$28,741 million in 2010.

Danone is the world's leading player in dairy, with a 6% value share in 2010. In baby food, Danone's other core category, it ranks second globally, with a 14% value share in 2010, some way behind leader Nestlé SA, with 22%.

2010 growth driven by joint ventures and acquisitions

Danone is implementing a strategy of geographic and category expansion via a number of joint venture agreements and merger of its regional operations, such as in Russia, Ukraine, Kazakhstan and Belarus, where it merged its fresh dairy business with Unimilk.

It also formed a joint venture with Murray Goulburn in Australia and Chiquita Brands International in Europe.

The group has also acquired YoCream, the leading producer of frozen yogurt in the US, for US$103 million.

Waters sales driven by emerging regions

 In terms of category performance, Waters delivered the highest year-on-year growth rate for the first nine months 2011. Latin America and Asia continued to drive the division, with double-digit growth reflecting strong demand and increased market share. In contrast, sales in Western Europe were negatively impacted by unfavourable weather. Business in Japan returned to normal.

Innovations in Fresh Dairy Products

 The category has seen a number of new innovations to drive growth in selected markets. In the US, the company sharpened its focus on the Greek yoghurt segment and launched a revamped line under the Oikos name, with satisfactory initial results.

Double-digit growth continues in baby food

 Baby food sales were up in all regions, with Indonesia, China, the Middle East, the UK and Turkey being the division's top drivers.

Danone, Groupe: 9 Months 2010 vs 2011

WEAKNESSES

Reduced scale Chinese dairy operations

After its exit from the Wahaha joint venture in China, Danone's presence in this attractive market is significantly reduced, therefore it is not best positioned to benefit from the expected high growth.

THREATS

Still weak consumer spending power Falling consumer spending power and price-conscious purchasing decisions,

have hit mainly premiumpositioned portfolios and their profitability.

Weak positions in Americas baby food Danone has a global scale and wide geographic market reach in baby food, but its market penetration in the Americas remains moderate.

Highly competitive food industry

The main factors of competition in the industry include brand loyalty, price, product quality, innovation, promotion and the ability to identify and satisfy consumer preferences.

Asia Pacific market position following exit from Wahaha joint venture

 The deconsolidation of Danone's revenues from its Wahaha joint venture reduced the company's presence in China significantly. In 2010, it held a less than 1% value share in packaged food. Danone also sold its stake in Britannia Industries Ltd, a leading bakery company in India, and currently Danone is taking steps to set up and expand its operations in various Asia Pacific markets independently. However, this pace of expansion is moderate.

Consolidation of strong market positions

Danone's leading position in global dairy remains unchallenged, with a 6% value share in 2010, and it holds a strong second position in baby food with 14% of global value sales.

In accordance with the group's strategy, new products are developed with strong nutrition and health components, and added-value and functional products remain the priority in terms of innovation.

Intensifying competition in the HW arena

 Danone's streamlined health portfolio faces strong competition from most leading packaged food companies, but especially from Nestlé and PepsiCo. Both conglomerates have supported their HW claims with significant investments into a more structured and formalised approach to developing their new offerings. They both created their own 'Institutes of Nutrition'. However, with similar wellness strategies, most companies compete for the same health-conscious consumer base.

Operating market environment

The still lacklustre business environment has a negative impact on consumers' purchasing power and it creates a trend towards more value for money products.

Poor economic conditions, major retailer expansion and private label's more brandorientated strategies are bolstering the strength of private label items, particularly in dairy, which is already heavily commoditised.

% y-o-y growth

Danone vs Global Packaged Food Market 2007-2010

(% year-on-year growth)

20%

15%

10%

5%

0%

-5%

2007: The acquisition of Royal Numico and the high 13% year- on-year growth in the company's largest food division, dairy, propels the company well above global average market growth, despite the global scale divestment of its bakery operations to Kraft Foods.

2009: Danone suffers the impact of the global economic recession with its predominantly premiumpriced positioned product portfolio in dairy.

However, the largest contributor to the decline is the group's exit from its Chinese joint venture with Wahaha.

2010: With the exception of Danone's Western Europe dairy division all categories and regions report strong retail value sales growth in 2010, but its well over market level performance is most significantly boosted by the acquisition of Unimilk in Eastern Europe, where in 2010 Danone's packaged food operations grew by 113% year-on-year.

Packaged Food: Top 10 Global Companies by Value 2006-2010

Companies

Danone's steady performance despite restructuring

 In 2008 Danone slipped outside the top five global food players as Mars advanced from sixth to fifth place after acquiring Wrigley.

Nestlé SA

Kraft Foods Inc

Unilever Group

PepsiCo Inc

Mars Inc

Danone,

Groupe

Kellogg Co

Despite the fundamental transformation of its business

3.3lines, Danone's global packaged food value share remained over 1% throughout the 2006-2010 period.

3.2  The key driving trends of the packaged food market were acquisitions into fast-growing categories fuelled by the

2.0intensifying health and wellness trend, e.g. baby food, functional dairy products and expanding geographic

1.8reach into emerging markets. Danone's restructuring was completed in order to ensure the group is well placed to

1.4benefit from all of these driving forces.

Top four players maintain positions over 2006-2010

1.4  Nestlé has been the leading global packaged food player throughout the 2006-2010 period, although after the

0.8acquisition of Cadbury it is only marginally ahead of Kraft.