Danone

Danone S.A.

File:Danone logo.svg Logo used since 2009
Company type	Public (Société Anonyme)
Industry	Food processing
Founded	January 1, 1919 (1919-01-01) in Barcelona, Spain
Founder	Isaac Carasso
Headquarters	Paris , France
Area served	Worldwide (120 countries as of 2018)
Key people	Antoine de Saint-Affrique (CEO), Franck Riboud (Honorary Chairman, as of 2018)
Products	Dairy and plant-based products, specialized nutrition, branded bottled water
Number of employees	Not specified (900 job cuts in 2013 represented 3.3%)
Parent	None
Website	www.danone.com

Danone S.A. () is a French multinational food company with its headquarters located in Paris. Established in 1919 in Barcelona, Spain, the company is publicly traded on Euronext Paris and forms part of the CAC 40 stock market index. In the U.S. market, some of its products are marketed under the Dannon brand.

By 2018, Danone was active in 120 countries, generating revenues of €24.65 billion. During the first half of that year, 29% of its turnover came from specialized nutrition products, 19% from branded bottled water, and the remaining 52% from dairy and plant-based items such as yogurt.

Origin of the Name

The origins of Danone trace back to Isaac Carasso (born İzak Karasu), a Sephardic Jewish doctor from Thessaloniki in the Ottoman Empire, who began producing traditional yogurt in Barcelona in 1919. The brand name Danone translates to "little Daniel," chosen in honor of his son Daniel Carasso.

In 1929, Isaac moved the enterprise to France and established a manufacturing facility in Paris. Later, in 1942, Daniel Carasso transferred operations to New York City, collaborating with Swiss-born Spaniard Juan Metzger and introducing the Dannon brand specifically for the American market. Daniel returned to Paris in 1951 to manage European activities; meanwhile, the U.S. branch was sold to Beatrice Foods in 1959 before Danone reacquired it in 1981. The company merged with Gervais, France’s foremost fresh cheese producer, in 1967, resulting in Gervais Danone.

In 1973, Danone combined forces with bottle manufacturer Boussois-Souchon-Neuvesel (BSN), a firm formed by merging Glaces de Boussois (flat glass) and Verreries Souchon-Neuvesel (bottles and jars). BSN had previously absorbed several brands including Evian, Kronenbourg, Société Européenne de Brasseries, and Blédina. The entire group adopted the name Groupe Danone in 1983.

Strategic Transformation (1970–2000)

BSN’s initial acquisitions aimed at vertical integration by purchasing Alsatian brewer Kronenbourg and mineral water brand Evian—both major clients for its glass manufacturing division—thereby securing demand for its bottle production. The 1973 merger with Gervais Danone expanded its international reach and led to rebranding Dannon yogurt in the U.S., supported by a prominent advertising campaign launched in 1976. By 1979, the company exited the glassmaking industry through the sale of Verreries Boussois.

In 1987, Gervais Danone acquired Générale Biscuit, a European biscuit producer known for the LU brand; two years later it purchased Nabisco’s European biscuit operations including UK-based Huntley and Palmers, Peek Frean, and Jacob's brands. These acquisitions significantly broadened Danone’s presence within Europe’s biscuit sector.

The company officially adopted the Groupe Danone name in 1994 as part of a rebranding effort centered on its most recognized global brand. Franck Riboud took over as chairman and CEO from his father Antoine in 1996, maintaining a strategic focus on three principal categories: dairy products, beverages, and cereals. Under Riboud’s direction, Danone streamlined its portfolio by divesting non-core brands such as Amora, Liebig, and Maille.

Between 1999 and 2003, Danone systematically divested its glass-container operations—initially selling a 56% stake followed by another 44%—completing its exit from this sector to concentrate exclusively on core food and beverage markets.

21st century

In 2000, the company divested the majority of its European beer operations, including the Kronenbourg and 1664 labels, selling them to Scottish & Newcastle for £1.7 billion. By March 2002, it had also offloaded its Italian cheese and meat divisions (Egidio Galbani Spa), along with its beer business in China.

The British (Jacob's) and Irish biscuit segments were transferred to United Biscuits in September 2004. Subsequently, in August 2005, the Group exited the sauces market in both the UK and US by selling HP Foods, followed by the sale of its Asian sauces division (Amoy Food) to Ajinomoto in January 2006. Despite these sales, Danone maintained its international growth trajectory across its three primary sectors, concentrating on products that promote health and wellness.

July 2007 saw Danone agreeing to offload most of its biscuit portfolio—comprising LU and Prince brands but excluding Latin American (Bagley) and Indian (Britannia Industries) businesses—to Kraft Foods Inc (now Mondelēz International) for around €5.3 billion. In the same month, Danone's €12.3 billion cash bid for Dutch baby food and clinical nutrition firm Numico was approved by both parties’ boards, establishing the world's second-largest manufacturer in baby nutrition.

Dairy-focused business (2010–present)

In 2009, Groupe Danone adopted the simplified name Danone.

Having invested €12.3 billion in 2007 to acquire Numico’s baby and medical nutrition units, Danone further expanded into Russia in 2010 by purchasing a 57.5% share of OAO Unimilk, which commanded 21% of Russia’s dairy market. Unimilk operated 28 production sites across Russia, Ukraine, Belarus, and Kazakhstan, generating €969 million in sales during 2009 with a workforce of 18,000 across the CIS countries.

Danone enhanced its footprint in India by acquiring Wockhardt group's nutrition business in 2012.

Confronted with sluggish demand, Danone reduced its European workforce by 900 positions (approximately 3.3%) in early 2013.

From 2013 onward, Danone expanded its African operations through controlling interests in Centrale Danone (Morocco), Fan Milk (West Africa), and Brookside (Kenya).

On October 1, 2014, Franck Riboud stepped down as CEO, with Emmanuel Faber taking over the role. By 2016, Danone was active in 130 countries with revenues totaling $25.7 billion—over half originating from emerging markets. In 2015, fresh dairy represented half of total sales; baby food accounted for 22%, branded water for 21%, and medical nutrition for 7%. In 2017, Riboud transitioned to honorary chairman while Faber assumed both chairmanship and CEO responsibilities.

Following the acquisition of WhiteWave Foods (including Alpro) in 2017, Danone rebranded this subsidiary as Danone North America in 2018.

In 2020, Danone announced a restructuring plan that involved cutting up to 2,000 jobs (around 2% of its global workforce). Later that year, hedge fund Bluebell Capital criticized the company’s stock performance under Faber’s leadership and questioned how well shareholder interests balanced with sustainability goals. After weak financial results early in 2021, Faber was removed from his CEO and chairman positions.

Antoine Bernard de Saint-Affrique was named CEO starting September 2021.

In 2023, Danone Manifesto Ventures invested in Wilk, an Israeli producer specializing in cell-based dairy products and infant formula.

Following geopolitical upheaval triggered by Russia’s invasion of Ukraine, Russian authorities took control of Danone Rossiye under temporary state management in July 2023. By early 2024, reports connected businessmen linked to Chechnya with a potential acquisition deal valued under $200 million. In March 2024, President Putin ended the temporary management directive to enable a sale of the Russian subsidiary.

In May 2025, Danone increased its stake by acquiring a majority interest in U.S.-based Kate Farms, a company focused on medical nutrition products—further bolstering its position within this market segment.

Head office

Since 2002, Danone's corporate headquarters have been situated in the 9th arrondissement of Paris.

Executives and board

Danone's leadership structure consists of a CEO, a chairman, and a board of directors. As of April 2018, the board comprised 16 members, including:

• Antoine de Saint-Affrique – Chief Executive Officer
• Franck Riboud – Honorary Chairman
• Guido Barilla
• Frédéric Boutebba
• Cécile Cabanis
• Gregg L. Engles
• Clara Gaymard
• Michel Landel
• Gaëlle Olivier
• Benoît Potier
• Isabelle Seillier
• Jean-Michel Severino
• Virginia A. Stallings
• Bettina Theissig
• Serpil Timuray
• Lionel Zinsou-Derlin

By 2021, the executive committee was composed of:

Ownership

The ownership distribution of Danone is as follows: American investors hold 43%, French investors own 19%, British shareholders account for 10%, Swiss investors hold 6%, German investors possess 5%, while the remaining 17% is owned by other European stakeholders.

Main brands

Danone's brand portfolio features a mix of global and regional names. In 2018, prominent international brands included: Activia, Actimel, Alpro, Oikos (branded as GetPro in the UK, YoPro in Brazil, Spain, Australia, and HiPro in Italy and France), Aptamil, Danette (known regionally as Danet), Danimals, Danio, Dannon, Danonino, Evian, Nutricia, and Volvic. Regional brands encompass AQUA (Indonesia), Blédina (France), Bonafont (Mexico and Brazil), Cow & Gate (UK), Happy Family (USA), Horizon Organic (USA), Mizone (China and Indonesia), Prostokvashino (Russia), Protinex (India), Silk (USA), and Damavand (Iran).

Joint ventures

Danone drives expansion primarily through joint ventures, with emerging markets—responsible for over half of total sales—being a key focus.

Significant collaborations include Al Safi in Saudi Arabia established in 2001, partnerships with Yakult in India since 2005 and Vietnam from 2006, Alquería in Colombia initiated in 2007, and an alliance with Mengniu in China during 2013–2014.

Australia

Danone Murray Goulburn represents a joint venture with Saputo Dairy Australia that markets yoghurt and fresh dairy products across Australia. Production facilities are located in Kiewa, Victoria.

Bangladesh

In 2006, Danone joined forces with Grameen Bank to form Grameen Danone Foods, a social enterprise producing Shokti Doi yoghurt enriched with protein, vitamins, iron, calcium, zinc, and other micronutrients aimed at addressing child malnutrition. Priced at an accessible six euro cents to reach low-income households, this initiative emphasizes improving public health outcomes, generating employment opportunities, reducing poverty levels, and promoting environmental sustainability. Earnings are reinvested to support business growth.

India

Danone entered the Indian nutrition sector in 2012 by acquiring Wockhardt Group’s nutrition division. Its product offerings cater to different life stages including pregnancy, infancy, childhood, and adulthood with brands such as Aptamil, Neocate, Farex, Protinex, Dexolac, and Nusobee. Headquartered in Mumbai, Danone India refined its portfolio in 2018 by discontinuing certain dairy items to concentrate more strategically on nutrition-focused products.

Israel

In 1996, Danone secured a 20% ownership in Strauss Group, the second-largest food producer in Israel, expanding on collaborative efforts dating back to the 1970s.

Saudi Arabia

To enhance its footprint in Saudi Arabia, Danone formed a partnership with Al-Safi (part of the Al Faisaliah Group) in 2001.

China

Danone has maintained operations in China since 1987 through a joint venture with Fengxing Milk. China is recognized as one of Danone’s top five markets.

Bright Dairy

Between 2001 and 2006, Danone increased its shareholding in Bright Dairy from 5% to 20%, becoming the third-largest investor. In 2007, Danone exited by selling its shares back to Bright Dairy’s principal shareholders and paid €31 million to terminate distribution and manufacturing contracts.

Wahaha

Danone held a majority 51% stake in the Wahaha joint venture established in 1996 alongside Hangzhou Wahaha Group. Although initially successful, conflicts emerged over unauthorized use of the Wahaha brand by entities controlled by Wahaha’s management but external to the joint venture. Legal disputes spanned from 2007 until a resolution in 2009 led to Danone divesting its shares back to Wahaha’s partner, ending its involvement.

Mengniu

In 2013, Danone made a strategic investment starting at 4%, later raising it to 9.9%, in Mengniu, China’s leading dairy company, through an agreement with COFCO. The partners launched a joint venture aimed at expanding fresh dairy offerings. Additionally, in 2014, Danone acquired a 25% stake in Yashili alongside Mengniu’s controlling interest.

Russia

Danone combined its fresh dairy operations with Unimilk across Russia and neighboring countries in 2010, forming the region’s largest dairy enterprise and establishing Russia as a significant market. By October 2022, Danone began transferring its Russian assets to new ownership; at that time, Russia contributed roughly 5% of global revenue. As of mid-2023, no successor had been finalized; meanwhile, Danone rebranded Activia as Aktibio to continue investment locally. In July 2023, Russian authorities seized Danone Russia shares and appointed Ibragim Zakriev as General Director. Danone reported losses totaling €700 million from write-downs on its Russian business plus €500 million due to currency exchange impacts.

Africa

In Morocco, Danone increased its holding in Centrale Laitière to 67% in 2012—marking its first franchise relationship originating from 1953. In 2013, it collaborated with Abraaj Group to acquire FanMilk International, a major producer of frozen dairy products and juices across West Africa. The following year, Danone purchased a 40% stake in Brookside Dairy based in Kenya.

Philippines

In October 2014, Danone established a joint venture with Universal Robina aimed at beverage production and distribution development.

Danone Institute

The Danone Institute is a nonprofit organization dedicated to advancing nutrition and public health research and education. Initially founded in Paris in 1991 and officially incorporated as a nonprofit in 1997, it is governed by nutrition specialists alongside Danone executives.

Global network

By 2007, Danone had created 18 institutes worldwide—including locations such as Belgium, Canada, China, France, Germany, Indonesia, Israel, Italy, Japan, Mexico, Poland, Russia, Spain, the United States, and Turkey—that address local nutritional issues through customized initiatives like funding research projects, organizing conferences, publishing materials for professionals, and conducting public awareness campaigns.

Each institute operates under an eight-member board of directors responsible for strategy and budgeting and a scientific council of six to ten members overseeing program direction. Together they have supported over 900 research projects with budgets surpassing €16 million as of early 2021.

Danone Institute International

Founded in 2004 to unify the network’s global activities, this nonprofit entity fosters cooperation among more than 220 scientific specialists in clinical nutrition and related disciplines. It hosts international symposiums and provides financial support for research through grants and awards.

Danone International Prize for Nutrition

Initiated in 1997 by the Danone Institute International with backing from Fondation pour la Recherche Médicale, this €120,000 prize is awarded every two years to honor exceptional achievements in the advancement of human nutrition science. The award promotes innovation, with winners chosen by an independent panel from researchers affiliated with nonprofit organizations worldwide.

Distinguished recipients include:

• 2016 – Philip Calder (nutrition and immune function)
• 2013 – Gökhan S. Hotamisligil (immunology and metabolic disorders)
• 2011 – Jeffery I. Gordon (gut microbiota)
• 2007 – Jeffrey M. Friedman (genetics and leptin studies)

In 2018, the award was renamed the Danone International Prize for Alimentation.

Global summit on yogurt health effects

Since 2012, the Danone Institute International has partnered with the American Society for Nutrition (ASN) to host yearly summits focused on evaluating yogurt’s health benefits, targeting both healthcare professionals and public education.

Yogurt in Nutrition Initiative

Established in 2013 alongside ASN and the Nutrition Society, this initiative aims to advance research on yogurt’s contribution to balanced nutrition. It supports international conferences and funds projects highlighting yogurt’s role in preventive health.

Corporate social responsibility

Danone manages several funds including danone.communities (financing social enterprises), the Ecosystem Fund (assisting collaborators such as farmers), and Livelihoods (environmental initiatives tied to carbon credit markets). These efforts reflect founder Antoine Riboud’s vision expressed in his influential "Marseilles speech" (1972), which advocates for sustainable development incorporating social and environmental accountability.

In 2020, Danone pledged to source only cage-free eggs by 2025 as part of its animal welfare commitments.

2005–2006: Rumored PepsiCo takeover

Due to its focused brand portfolio, Danone attracted takeover interest from competitors like Nestlé and Kraft Foods. Mid-2005 speculation about a PepsiCo bid caused stock prices to rise sharply but was officially denied. The French government responded with legislation known as the "Danone Law," designed to shield key companies from foreign acquisition attempts.

2010–2013: Issues surrounding infant formula marketing

Allegations emerged accusing Danone of unethical promotion of infant formula in countries including China, Indonesia, Turkey, and India—breaching local laws that restrict advertising breast-milk substitutes.

India

Following its acquisition of Wockhardt’s nutrition division through Nutricia India early in the decade, internal audits found no evidence of improper payments to physicians; nonetheless, critics raised concerns about the audits’ timing and scope amid ongoing scrutiny over sponsored medical events potentially violating India’s IMS Act, which prohibits formula advertising for children under two years old.

China

A 2012 survey by Save the Children identified extensive distribution of formula samples—including those from Dumex (Danone)—to mothers through company representatives or healthcare personnel, despite ongoing initiatives promoting breastfeeding.

Indonesia

According to a 2013 report by The Guardian, up until at least 2011, Danone’s subsidiary Sari Husada offered financial incentives or gifts to midwives in exchange for formula sales. Although these practices were later replaced with training programs, concerns persisted regarding the company's influence within healthcare environments, potentially compromising breastfeeding promotion, particularly in regions with limited access to clean water.

Turkey

In June 2013, Danone was accused of using deceptive marketing tactics implying that mothers’ breast milk supply was inadequate. The World Health Organization denied any endorsement of the campaign, while UNICEF demanded the removal of its name from promotional materials despite Danone’s assertions that the campaign complied with WHO guidelines.

Fonterra New Zealand incident

Between August and September 2013, following the detection of possible Clostridium botulinum contamination by Fonterra suppliers affecting infant formula production facilities serving markets in China and Southeast Asia, Danone proactively recalled impacted products as a safety measure. Subsequent testing ruled out contamination. Following this, Danone ended supply agreements citing non-compliance with safety standards and successfully obtained €105 million in damages from Fonterra.

Price fixing

In 2019, Spain’s regulatory authority, the Comisión Nacional de los Mercados y la Competencia, imposed a fine of €929,644 on Danone for participating in cartel activities alongside other dairy firms aimed at restricting competition in milk procurement from Spanish farmers between 2000 and 2013. However, in February 2024, Spain’s Audiencia Nacional annulled this penalty due to expiration of the statute of limitations concerning Danone.

See also

• Danone Nations Cup