Health-Oriented Portfolio

Danone is focusing on health and wellness through food, with the goal of reducing the sugar content in its products for children without compromising on taste by 2025. It also aims to increase access to safe drinking water, reduce iron-deficiency anemia, and improve nutrition through product fortification by 2025. In the first half of 2025, Danone's sales grew by 4.2% year-on-year, driven by volume/mix (+2.6%) and price (+1.7%), with strong growth in plant-based products like Alpro.

Danone's focus on reducing sugar and improving the nutritional value of its products, especially for children, is a response to growing consumer awareness of health and wellness. This aligns with Gen Z's values of "caring for their health and well-being." The significant growth in plant-based products demonstrates successful adaptation to changing dietary trends and the demand for healthier, more sustainable options. This strategy reflects a tension between offering traditional products and the need to innovate to meet the expectations of more informed, health-conscious consumers. The sales growth validates this strategic direction.

Recommendations

• Invest in research and development of products that address health and wellness needs, with an emphasis on reducing undesirable ingredients and nutritional fortification. Expand the portfolio of plant-based products.

• Clearly and transparently communicate the nutritional benefits and efforts to improve consumer health. Use the growth of plant-based products as a key marketing pillar.

• Allocate resources to innovation in healthy and plant-based products, recognizing their potential for long-term growth.