Danone is one of the world’s leading suppliers of dairy products, and has for some time been turning towards animal-free, plant-based alternatives. The company has now announced that it intends to triple its sales of plant-based products by 2025.
The high growth potential of the plant-based market is accelerating the availability of dairy-free beverages and yoghurts. According to Danone, the company aims to increase its sales of plant-based products from 1.7 billion euros to around 5 billion euros.
In collaboration with other plant-based food companies, Danone recently founded the Plant-Based Foods of Canada lobby group to represent the interests of the plant-based food sector in Canada. In addition, the manufacturer of Activia and Volvic announced at an investor seminar in London that it is aiming for savings of 1 billion euros by 2020.
Danone CFO Cécile Cabanis said: “Given the increasingly volatile environment, we are very pleased with the improved resilience of our operating model, and are delivering good results. In the face of short-term challenges, including our early childhood nutrition business in China, the path to 2020 will not be linear. We will continue to strengthen and accelerate our business model throughout 2019 and 2020 in order to meet our targets, achieve consistent EPS growth and create sustainable shareholder value.”
Emmanuel Faber, CEO of Danone, added: “Our growth strategy focuses on delivering valuable innovations to address some of the fastest-growing trends, especially among younger generations. We are continuing to make our organizational model more efficient by empowering our employees and encouraging commitment. Our strategic priorities remain to accelerate growth, maximize efficiency and deploy capital in a disciplined manner.”