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

DAIRY CATEGORY OPPORTUNITIES

Strong market position in functional yoghurt categories

Danone's strong presence in all yoghurt categories (global number one in all with the exception of functional drinking yoghurt, where it is number two to Yakult Honsha) is founded on its extensive brand stable; five out of the top 10 yoghurt labels in the world are from Danone.

The group's largest segment is functional spoonable yoghurt, which accounted for some 32% of its yoghurt sales in 2010. The category is predicted to be the fastest growing and by 2016 will likely be the third largest yoghurt category after fruited spoonable and functional drinking yoghurt, with sales of US$16 billion.

Danone's presence in fruited spoonable yoghurt, the largest yoghurt category, could be strengthened more cost efficiently than in the premium segments where significant investments need to be made in new product development, and in the current economic climate, consumer preference is still moving towards more value items.

DAIRY CATEGORY OPPORTUNITIES

Expansion of Danone's functional yoghurt portfolio

 Danone's functional yoghurt range has expanded over the 2006-2010 period; functional drinking and spoonable yoghurt together accounted for 53% of the company's yoghurt sales in 2010, up from 42% in 2006.

Developing further growth platforms in functional yoghurt categories via partnerships

Danone has an almost 20% stake in Yakult Honsha, the world's number one company in pro/pre biotic drinking yoghurt. Joint research and development efforts in pro/pre biotic products are beneficial to both parties. Increasing its stake in or acquiring Yakult would be an option for Danone to consider as part of its development strategy in this fast growing category. Danone also operates a smaller-scale venture with Yakult Honsha in the Indian yoghurt market.

In early 2008, Danone formed a joint venture with Weight Watchers International, to create a company specialised in weight management in China. Danone owns 49% of the venture.

DAIRY CATEGORY OPPORTUNITIES

Danone's unchallenged lead in functional spoonable yoghurt

DAIRY CATEGORY OPPORTUNITIES

Strong market positions across all regions

Danone's functional spoonable yoghurt operations are well balanced geographically across both developed and emerging markets. Danone is the number one player in all regions, except Asia Pacific and Australasia.

In North America, unlike for most packaged food categories, the market size of functional spoonable yoghurt is relatively small. But as the perception of the product improves and its healthy image is being strongly promoted by all manufacturers, the market could rapidly expand and competition to category leader Danone could intensify from the likes of Sodiaal, Dean Foods and Unilever, although they are all some distance behind Danone.

Latin America, Eastern Europe and Asia Pacific are all predicted to grow at high rates over the 2011-2016 period, albeit from moderate bases. However, Danone will have to get its pricing policy right in these regions, as the upward swing in consumption will level off much sooner if prices rise too aggressively.

Danone's core, developed Western European markets are also expected to continue growing on the back of health trends, proving resilient to recession. However, profit margins are under pressure as consumers' spending power has weakened and the company was forced to introduce strong discounting in severely impacted markets.

Danone, Groupe: Functional Spoonable Yoghurt Sales by Region 2010

DAIRY CATEGORY OPPORTUNITIES

Danone in the US yoghurt market

The US is Danone's largest national market for functional spoonable yoghurt, with sales of US$996.2 million and a 56% category value share and second largest functional drinking yoghurt market, with sales of US$307 million and a 92% value share in 2010.

In the US, the demand for yoghurt in general has been relatively low, as consumers only recently started eating yoghurt regularly. Until the 1970s, yoghurt suffered from negative perceptions of being sour and flavourless. Flavoured varieties helped erase this notion and yoghurt's health food image became a strong positive, as consumers become more health-conscious. The country's more affluent population makes it an attractive market to all industry players and could increase market competition significantly.

In US functional drinking yoghurt, Danone launched Danimals in 2007, which instantly achieved a 46% share; however, since than its category value share has been steadily declining, at the hands of sister brands, DanActive and newly launched Activia, in the category.

The new innovations cannibalised sales of Danone's previous North American market leader, Stonyfield Farm, whose share fell from 42% in 2006 to 7% by 2010 in functional drinking yoghurt.

DAIRY CATEGORY OPPORTUNITIES

Asia Pacific position after exit from high-profile joint venture

Danone secured a strong position in the Asia Pacific dairy market through its joint venture with Wahaha, to rank seventh in the category in 2008, the year before its exit from the large-scale venture. However, the deconsolidation of revenue from Wahaha reduced Danone's presence in China by over 90% from 2009 onward. Danone also sold its stake in Britannia Industries Ltd, a leading bakery company in India, and currently the group is taking steps to set up and expand its operations in various Asia Pacific markets independently.

In 2011 Danone also announced that it merged its distribution operations in India with its probiotic drinks joint venture Yakult Danone India so as to achieve greater synergies. The group has also launched new fortified/functional dairy drinks and yoghurts in the Indian market, and is also reportedly planning to introduce some of its 'blockbuster' Danone products over the next two years.

As part of its organic expansion strategy for Asia Pacific, it has also entered South Korea. However, in order to exploit the long-term growth opportunities in Asia Pacific dairy, Danone will have to address its loss of growth platform in China following its exit from the Wahaha venture.

Small steps in China since the end of the Wahaha venture

The Chinese dairy market is expected to grow at an 8% CAGR over 201-2016, although some 73% of the absolute retail value growth will be generated in drinking milk products there. However, no successfully expanding dairy company could leave China off their priority list.

Danone has a global status and the strategic and financial capability to exploit this key trend in the Chinese yoghurt market. It has also been active in various other Asia Pacific markets with launches to enhance its foothold in growth categories, both via new product introductions, such as in India, and via the entry of its flagship labels in new markets. However, organic expansion is likely to be a long-term strategy in its efforts to achieve the same scale it enjoyed under the Wahaha joint venture.

DAIRY CATEGORY OPPORTUNITIES

Wider category presence in Easter Europe via merger

Joint Danone-Unimilk operations in Eastern Europe

In 2010, Danone and Unimilk Kompania announced to establish joint dairy operations across Russia, Ukraine, Belarus and Kazakhstan, with Danone taking a controlling 57.5% share in the new entity, with estimated joint annual sales of €1.5 billion.

The united operations expect to benefit from their complementary geographic and category positioning across all price platforms. The venture's geographic direction is undeniably focused on markets with good growth potential.

Category-wise, Danone's currently high profit margins from operations mainly in added-value and functional segments could be pressed downwards with the addition of Unimilk's lower-margin, largely milk, sour milk and cream portfolio, which also secures Danone's presence at lower price platforms, ensuring a wide consumer base for the merged operations. Through the merger in Russia, Danone entered the cheese market and significantly expanded in drinking milk products and other dairy, such as cream and fromage frais and quark.

BABY FOOD CATEGORY OPPORTUNITIES

Highly consolidated global baby food market

BABY FOOD CATEGORY OPPORTUNITIES

Acquisition-led strategies drive highest growth rates

Over the 2006-2010 period, Danone, Nestlé and Pfizer outperformed the overall market, which grew at a 11% CAGR in constant value terms, which was largely the result of their large-scale acquisition activities.

Nestlé has led baby food throughout the 2006-2010 period. With the purchase of Gerber, Nestlé strengthened its leading position in global baby food and increased its North American category value share from 9% in 2006, in the year prior to the acquisition, to 26% by 2010.

Danone has also been on the acquisition trail. The purchase of Royal Numico in 2007 gave Danone the leading position in many regional baby food markets, such as Eastern and Western Europe, as well as a presence in Asia Pacific. However, Danone still has only a modest presence in North and Latin America.

Pfizer's rapid rise to global fifth position was fuelled by the 2009 takeover of Wyeth, the world's sixth largest baby food player prior to its acquisition.

Heinz's posted the lowest absolute retail value sales gain over the 2006-2010 period, mainly due to its baby food markets are slow growing Western Europe and Australasia. A lack of acquisitions also meant that it under-performed the other top 10 players and the overall baby food market.