Renew Danone strategy

In 2022, our CEO, Antoine de Saint-Affrique, together with the leadership team, presented Danone’s new strategic plan, Renew Danone, to enable the company to reconnect with a sustainable profitable growth model. 

Since then, we have implemented a radical transformation, in acting notably on 3 resets: a cultural reset, an executional reset, and a financial and business model reset. Moreover, we have also taken a much more proactive and disciplined approach to manage our portfolio, by driving our core, boosting our winners, and progressively fixing our underperformers.

After two years of material progress, Antoine de Saint-Affrique and the leadership team opened the next chapter of the Renew strategy at Danone’s Capital Market Event in June 2024. This next chapter will build on the fundamentals reestablished over the last two years and project Danone into the future of Health and Nutrition.

More infos about the capital market events

The next chapter

The food and beverage market is at a tipping point, where health – and the role food plays in health – will become more critical than ever.

In our next chapter, we will build on the fundamentals reestablished over the last two years: science and innovation, operational and executional discipline, and proactive portfolio management.

In particular, Danone will project itself into the future of health and nutrition by:

  • Gradually pivoting the way we address our categories – notably protein and gut health

  • Broadening some of our business models, accelerating in “away-from-home” and medical nutrition

  • Further expanding our geographic footprint

Committed to a long-term value compounding model

Committed to a long-term value compounding model, Danone aims to consistently deliver attractive returns, and expects, for the 2025-2028 period, like-for-like net sales growth between +3% and +5%, and recurring operating income to grow faster than net sales.

This financial guidance should allow Danone to deliver a structurally double-digit return on invested capital (ROIC) and progress towards its long-term ambition of €3bn free-cash-flow.

Pivoting the way we address our categories

We will gradually pivot the way we address our categories, looking at our markets in a consumer and patient-centric way. This notably includes scaling Medical Nutrition to address the structural trend of ageing populations.

Broadening some of our business models

We will broaden some of our business models to respond to external trends and capitalize on growth areas. For example, we are extending our patient journey by developing our presence in post-discharge care, as well as homecare. We are also accelerating our away-from-home offer in Dairy and Plant-Based as well as Waters.

Further expanding our geographic footprint

We will keep winning in the geographies where we are strong, like Europe, while expanding where our presence is narrow, like in the US, but also catching some opportunities in geographies where we have low presence, such as India or South-East Asia.

Moving to the front foot on portfolio management

We will take a more balanced approach to our portfolio management.

We’ll be more active on the acquisitions side, focusing on targets that fit with our strategy

while having a positive contribution to growth and margins. At the same time, we will continue to optimize our portfolio, in order to strengthen our company in the long term.

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