Danone: What are the new challenges awaiting Antoine de Saint-Affrique?
When a large French company like Danone changes boss, it is always an event, especially when it is a business in the world of consumption that has a real capital of sympathy.Antoine de Saint-Affrique will take the operational management of the group this Wednesday, September 15.
Danone changes its strategy and focuses more on its international force
Antoine de Saint-Affrique, who has made most of his career in the food industry, will be expected internally.He will choose his team and will implement a reorganization already decided in broad outline: to go from an organization by brands and by products which was very centralized, to a brand by country.This strategy is rich in meaning since Danone is a strong group in America, China and Europe.There is a first big question on the future of Danone's "water" pole.
Read also
Danone : Pourquoi Emmanuel Faber a été débarqué de la présidence du Conseil d’Administration
Some investors would like Danone, who is with Nestlé a giant in this area, sells this activity.This pole represents only 15% of the group's turnover and is far from yogurts or small pots or powdered milks for babies sold in supermarkets.Antoine de Saint-Affrique could decide to sell this activity but this sale would make little sense since pouring dividends and raising the stock market is not very constructive in the long term.The priority will be to relaunch the yogurt branch which is the heart of the group's reactor since it alone represents half the turnover of the company.
Activia and Danette will have to stand out from the competition
Emmanuel Faber, former president of Danone, had already taken the turn of the turn of milk without milk and plant yogurts to the group.This sector is growing and still demonstrates potential.Historical brands like Activia or Danette must also leave.For this, it will probably be necessary to invest more in innovation and marketing to differentiate yourself.The interest is therefore to keep the effectiveness of a multinational which has major brands and effects of scale, while leaving local brands and initiatives to develop.Globalization in food begins to show its limits.What is growing is local brands and new features is a real challenge for giants who tended to reply the same recipe everywhere.Today it is no longer enough.You have to know how to keep your place as a large group while being agile both.This is the real challenge of the new boss.
David Barroux
