Danone (DN) investor relations material

Market and category trends

• Health and food connection is strengthening, with demographic trends like aging and cancer driving demand for science-based nutrition products.

• Market fundamentals remain unchanged, with a focus on health foods and patient-centric approaches.

• Productivity programs provide a competitive edge, enabling reinvestment and selective pricing amid inflation.

• Product innovation and category mix, such as medical nutrition and high-protein offerings, are key growth drivers.

• Channel mix is shifting from hypermarkets to pharmacies and specialty channels, improving margins.

Regional performance and innovation

• North America yogurt market is buoyant, with protein-rich products showing lasting growth potential.

• Gut health trends, including probiotics and kefir, are accelerating, with Activia achieving double-digit growth in some markets.

• The Danone brand is underleveraged in the U.S. but is a strategic focus for future growth.

• Progressive improvement in North American performance is expected as capacity and innovation ramp up.

• Coffee creamers are stabilizing, with a trend toward naturalness emerging in the U.S. market.

Plant-based and specialized nutrition

• Plant-based brands are being repositioned from ingredient-driven to benefit-driven, with new teams implementing successful European strategies in the U.S.

• Progress in U.S. plant-based business is expected within 12 months as new strategies are deployed.

• Adult medical nutrition is growing rapidly in Asia and Europe, with strong returns from investments in sales and go-to-market capabilities.

• Expansion in China and the U.S. is supported by acquisitions like Kate Farms, enhancing reach and market access.