Dannone Case Study

Topics: Groupe Danone, Yoghurt, Evian Pages: 6 (1919 words) Published: July 12, 2013
 
7.3 CASE STUDY: THE DANNON COMPANY
Aziza S. Mukhammadieva
Southern New Hampshire University

Danone traces its routes to Europe in the early 20th century. In 1919, Isaac Carasso opened a small yogurt stand in Spain. He named it “Danone,” meaning “Little Daniel,” after his son. Carasso was aware of new methods of milk fermentation conducted at the Pasteur Institute in Paris. He decided to merge these new techniques with traditional practices for making yogurt. The first industrial manufacturer of yogurt was started (Karolefski, 2003). Following his success in Europe, Carasso immigrated to the U.S. to expand his market. He changed the Danone name to Dannon Milk products, Inc., and founded the first American yogurt company in 1942 in New York. Distribution began on a small scale. When Dannon introduced the “fruit on the bottom” line in 1947, sales soared (Karolefski, 2003). 1967, Danone merged with leading French fresh cheese producer Gervais to become Gervais Danone. In 1973, Gervais Danone merged with Boussois-Souchon- Neuvesel (BSN), a company which had also acquired the Alsacian brewer Kronenbourg and Evian mineral water (Bruce, 2009). In 1994, BSN changed its name to Groupe Danone, adopting the name of the Group’s best known international brand. Under its current CEO, Franck Riboud, the company has pursued its focus on the three product groups: dairy, beverages, and cereals (Bruce, 2009). Today, Danone is a Fortune 500 company with a mission to produce healthy, nutritious, and affordable food and beverage products for as many people as possible (Dannon, 2010). Danone, with 160 plants and around 80,000 employees, has a presence in all five continents and over 120 countries. In 2008, Danone recorded €15.2 billion in sales. Danone enjoys leading positions in healthy food: worldwide in fresh dairy products (No. 1), worldwide in bottled water (No. 2), worldwide in baby nutrition (No. 2), in Europe in medical nutrition (No. 1) (Danone, 2009). Its portfolio of brands and products includes Activia, a probiotic dairy product line; Danette, a brand of cream desserts; Nutricia, an infant product line; Danonino, a brand of yogurts; and Evian, a brand of bottled water (Reuters, 2013). Listed on Euronext Paris, Danone is also ranked among the main indexes of social responsibility: Dow Jones Sustainability Index Stoxx and World, ASPI Eurozone (Advanced Sustainable Performance Indices), and Ethibel Sustainability index (Danone, 2012). With a strong commitment to high-quality, wholesome, nutritious and innovative products, The Dannon Company is committed to encouraging healthy eating and living and strives to innovate with one goal in mind: to create foods for families and individuals with their health and enjoyment in mind (CSRwire, 2013). Danone's high index of Social responsibility is resulted from Danone’s outstanding practice with transparency, accountability and credibility towards its stakeholders. Danone’s responsibility for transparency is seen through its high level of public disclosure, high responsibility for environment/sustainable development, and effective management of the process of managing and reporting risk. For instance, Danone’s success in Nutrition & Health governance seeks to establish rules that are stricter than existing regulations with the aim of raising up their products' relevance and ensuring greater trust and transparency in the group’s communications (Danone, 2011). This approach is based on several in-house tools (Danone, 2010), and on the application of national, regional and/or international codes of best practice such as the Code of Advertising and Marketing Communication Practice for Foods and Non-Alcoholic Beverages of the International Chamber of Commerce (Danone, 2011). Another example of Danone’s responsibility for transparency to its stakeholders is seen in its main objectives to provide transparent and practical nutrition information. Danone promoted healthy behaviors through...

References: Bruce, B. (2009). Danone Celebrates Its 90th Birthday. Retrieved from http://www.foodbev.com/article/danone-celebrates-its-90th-birthday
CSRwire. (2013). Corporate Social Responsibility Profile of Dannon Company. Retrieved from http://www.csrwire.com/members/10333-Dannon-Company-The
Dannon. (2010). The Dannon Company, Inc. 2009 CSR Overview. Retrieved from http://www.dannon.com/pdf/2009_csr_overview.pdf
Danone. (2009). Danone, corporate press release. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=95168&p=irol-newsArticle&ID= 1336626
Danone. (2010). Danone Sustainability Report 2010. Retrieved from http://www.danone.com/images/pdf/danone_uk_24mai.pdf
Danone. (2011). Danone Sustainability Report 2011. Retrieved from http://media.corporate-ir.net/media_files/IROL/95/95168/Danone_Sustainability_Report_2011.pdf
Danone. (2012). Danone launches successful €750 million bond issue. Retrieved from http://finance.danone.com/phoenix.zhtml?c=95168&p=irol-newsArticle&ID=1760816&highlight=
Karolefski, J. (2003). Dannon Cultured. Retrieved from http://www.brandchannel.com/features_profile.asp?pr_id=120
Reuters. (2013). Danone S.A. Profile, Retrieved from http://www.reuters.com/finance/stocks/overview?symbol=DANO.PA
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