Danone

1. It is a French agri-food multinational that has its headquarters in Paris, France. It has 4 activities:
fresh milk products, water, infant nutrition and medical nutrition.

We are world leaders in fresh dairy products. Our beginnings go back to 1919 when Isaac Carasso
created in Barcelona the first factory in the world of industrial yogurt, for generalized
consumption.

The production plants in Spain (Madrid, Barcelona, Asturias and Valencia) supply 40,000 stores
daily and more than 11 million homes.

Danone works in more than 120 markets, having generated sales of $ 27,816 million in 2017, half
of which were in emerging countries. Dairy products and plant products accounted for 52% of
their total sales in 2017, while specialized nutrition and water accounted for 29% and 19%,
respectively

Mission
Danone’s commitment to bringing health through food is as old as the company itself. In 1919, our
founder Isaac Carasso began making yogurt to help children with intestinal infections, using
cultures from the Pasteur Institute. In the 1920s, he sold his first yogurts in Barcelona pharmacies
before expanding into grocery stores. Even prior to this, in the late 1890's, Nutricia - which joined
forces with Danone in 2007 - was pioneering discoveries that have transformed people's lives
around the world
For nearly a century, we’ve been faithful to his original purpose, selling healthy, delicious products
tailored to the nutritional needs and eating habits of our consumers. Essential Dairy and Plant-
Based Products, Waters, Early Life Nutrition and Medical Nutrition–all of our ranges share the
same goal: offering innovative, top-quality products that meet the expectations of consumers at
every stage of life. And while our business is about nourishing people and helping them take care
of their health, we never forget that it’s also about helping them live better lives and share their
enjoyment with others.
Now more than ever, consumers are concerned with food. The revolution now underway is
shaping how products are made and consumed, as well as our approach to preserving resources
and protecting the environment.

Vission

In 2017, Danone unveiled a refreshed logo and its very first company signature: One Planet. One
Health. These words reflect our vision that the health of people and the health of the planet are
interconnected. It is a call to action for all consumers and everyone who has a stake in food to join
the food revolution: a movement aimed at nurturing the adoption of healthier, more sustainable
eating and drinking habits.

Portfolio

With products sold in over 120 markets, we generated sales of €24.7 billion in 2017. Our portfolio
includes brands present worldwide (Activia, Actimel, Alpro, Danette, Danonino, Danio, evian,
Volvic, Nutrilon/Aptamil, Nutricia) and in local markets (Aqua, Blédina, Cow & Gate, Bonafont,
Horizon Organic, Mizone, Oikos, Prostokvashino, Silk, Vega).

Organization

Corporate Governance
Board of directors
As of December 12, 2014, these are the fifteen members of the Board of Directors and the
Secretary of the Board of Directors:

Franck Riboud - Chairman of the Board of Directors

Emmanuel Faber - Deputy Chairman of the Board of Directors and Managing Director of Danone
Bruno Bonnell - President d'I-VOLUTION
Richard Goblet d'Alviella - Executive President of Sofina SA
Jacques-Antoine Granjon - Managing Director of Vente-privée.com
Marie-Anne Jourdain - Counselor representing Danone employees
Jean Laurent - Independent Director Coordinator and Chairman of the Board of Directors of the
Foncière des Régions
Gaëlle Olivier - General Director of Insurance AXA Asia
Benoît Potier - Managing Director of L'Air Liquide SA
Isabelle Seillier - General Director of financial institutions of J.P Morgan for Europe, the Middle
East and Africa
Mouna Sepehri - Deputy Director to the Presidency of the Renault SA Group
Jean-Michel Severino - Manager of I & P SARL (Investisseurs & Partners)
Virginia A. Stallings - Professor of Pediatrics at the Children's Hospital of Philadelphia
Bettina Theissig - Counselor representing Danone employees
Lionel Zinsou-Derlin - Chairman of PAI Partners SAS
Laurent Sacchi - Secretary of the Board of Directors CA et Deputy Director to the Presidency
Executive committee
As of February 20, 2015, the members of the Executive Committee are:

Emmanuel Faber - Managing Director of Danone, and Vice President of the Board of Directors, has
been on the Executive Committee since 2000
Bertrand Austruy - Secretary General, belongs to the Executive Committee since 2015
Marc Benoît - General Director of Human Resources, belongs to the Executive Committee since
2014
Cécile Cabanis - Financial Director, belongs to the Executive Committee since 2015
Francisco Camacho - General Director Aguas, belongs to the Executive Committee since 2011
Felix Martin Garcia - General Director of Child Nutrition, belongs to the Executive Committee since
2008
Flemming Morgan - General Director of Medical Nutrition, belongs to the Executive Committee
since 2009
Jean-Philippe Paré - General Director of Research and Development, belongs to the Executive
Committee since 2011
Pierre-André Térisse - Director General Africa, belongs to the Executive Committee since 2008
Gustavo Valle - General Director of Fresh Dairy Products, belongs to the Executive Committee
since 2015
2. Level of competitiveness

Danone is a leading company worldwide, widely recognized through the different brands with
which it plays in the war of competition for the control of the markets
The consumption of dairy products in Spain grew 8% in 2017, to 7,913 million euros, according to a
study by EAE Business School. The sector of preparation of milk and other dairy products is one of
the most important, and is composed of companies of great importance, as reflected in the
national ranking of companies.

The main company in the sector by turnover continues to be Danone, with a total of 887 million
euros. The Barcelona-based company recorded a fall in revenues of 12.7% in 2017, which is in
addition to the 9.8% of the previous year. However, it is still the first and most important with a
high level of competitiveness in the sector

3.

4. Danone has been and is one of the most innovative companies in the world. In its product
portfolio diversification strategy, the R & D department has been one of the most relevant for the
growth of the company and the increase of its competitiveness.

This department, in coordination with commercial and marketing, has been developing new
products and varieties that have allowed to complement the commercial offer of the company and
make it more attractive and competitive: launches such as Danone curd, Danone egg and vanilla
puddings, dessert of chocolate and cream "The Danone Cup", the yogurt to drink "Dan Up", the
rice with milk, the Greek yogurt (baptized as "Oikos" later), the mousse of yogurt, the range of
Desserts Masters Danone, the category of yogurts for babies "Mi Primer Danone", frozen yogurt
"Yolado", "Prince de Danone" refrigerated biscuits, "Combi" yogurt and muesli tubs, "Frutix"
yogurt with crushed fruit, yogurts with seasonal fruit "The Danone Selection", the yoghurts to
snack between hours "Danio", the gourmet yogurts "Danissimo", the juices "Danao" ... And a long
list of products that the company develops and releases to the market every year .

The importance of innovation:

As can be seen, Danone has always been a particularly agile company when it comes to
introducing new products to the market, although a good part of its launches -as it cannot be
otherwise- ends up being withdrawn after its trial period. Not achieve the established sales goals.
However, the innovations that "set" in the market have contributed greatly to increase sales and
profitability of the company.

This is something that happens to all large consumer companies in which innovation is part of their
"DNA" and their competitive strategy

From the point of view of marketing, innovation is the tool with which companies try to "extend
the life cycle" of their products, improve their competitiveness, and therefore prop up their long-
term survival. When a company moves in a sector as competitive and dynamic (as is the mass
market) and stops innovating (depending only on the sales of its current products) is when the
"beginning of the end" comes. This is something that Danone has always had very present and
that is why it is one of the most dynamic companies in the world when it comes to innovate.

Therefore (and using the terminology of the matrix of the Boston Consulting Group -BCG-), the
objective of the new product launches is to achieve on the one hand that these can provide extra
billing to the company, thus making it grow

And on the other, to develop new "star" products (which have a great potential for growth in the
market) and that in the future can replace the current products when they reach their stage of
decline within their life cycle (and it is not possible to carry out its lengthening / relaunching, that
is, when they are "dead" and stop billing the company).

6. Activia is a probiotic yogurt produced by Danone (Dannon in the US), both semi-solid and
drinkable yogurts, and sold in small and large containers in more than 30 countries.
Activia contains the probiotic bacterium Bifidobacterium animalism. It also has vitamin B12,
vitamin B21 and calcium.
In 100 g of the preparation there is from 80 to 100 kcal (in the "mueslix" 115 kcal)
Activia is presented (depends on the countries) with flavors of strawberry, original, peach, pear,
mango, oats, walnut, coconut, vanilla, blueberry or blueberry, plum, muesli, kiwi, wild fruits
yerba sweet tea , fig, pineapple, aloe vera, fibers, rhubarb.
Bifidus actiregularis helps slow transit and intestinal irregularity. Activia is in the category of
functional foods designed to accompany digestive health. Such products typically contain races of
probiotics and may have prebiotics, in this case "fibers."
 7. Danone swot

8. Innovation

The multinational French dairy Danone, world leader in yogurt and other specialties, and owner of
a factory in Salas, has launched in four of its factories (one of them, in Spain) a pilot plan for the
automation of their factories with the incorporation of interactive robots (cobots), automation of
intelligent flows and data management ("big data"), as well as environmental objectives such as
total or partial self-supply of natural resources.
The program, called "Ideal Factory 2020", and that pursues -according to Danone- that the group
gives "the leap to industry 4.0" (considered as the fourth industrial revolution)

In the case of the Madrid factory, considered the most competitive of Danone in Europe, and in
which it produces 46 varieties of yoghurts and fermented milk for 24 hours a day and 362 days a
year, the company, of French nationality and Spanish origin, You have already completed the first
phase of the plan with the automation of your laboratory. From now, and until 2020, the dairy
group plans to invest another 4 million euros in the Madrid factory for its complete robotization
and also to develop a wastewater treatment system.