Danone to explore strategic options for the Horizon Organic and Wallaby businesses in the U.S.
Danone announced on January 26, 2023, that it will explore strategic options, including a potential sale, for its U.S. organic dairy operations, which include the Horizon Organic and Wallaby brands. These brands constitute about 3% of Danone's global revenues and have negatively impacted the company’s like-for-like sales growth and recurring operating margin in 2022. CEO Antoine de Saint-Affrique emphasized that while these brands are strong, they do not align with Danone's priority growth areas as defined in its Renew strategy. This move is part of a broader portfolio review initiated in March 2022.
- Horizon Organic and Wallaby brands are strong in the U.S. organic dairy category.
- Exploring strategic options is expected to enhance brand focus and growth potential.
- These brands represented approximately 3% of Danone’s global revenues.
- They had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin in 2022.
Press release – Paris, January 26, 2023
Danone to explore strategic options for
the Horizon Organic and Wallaby businesses in the U.S.
Danone announces today it will explore strategic options, including a potential sale, for its organic dairy activity in the U.S., comprised of the Horizon Organic and Wallaby businesses.
This announcement is an additional step in the portfolio review and asset rotation program the company announced in March 2022, as part of the Renew Danone strategy.
Horizon Organic and Wallaby are strong brands in the U.S. organic dairy category, with a portfolio of organic dairy products, including milk, creamers & whiteners, yogurt, cheese, and butter. They represent approximately
Antoine de Saint-Affrique, Chief Executive Officer, said:
“Both Horizon Organic and Wallaby are strong, much-loved brands with compelling growth opportunities.
That said, seen through the lens of our Renew Strategy which requires us to stay disciplined in how we allocate our resources, they fall outside our priority growth areas of focus.
We are confident that exploring strategic options for these brands will enable them to get the focus and resources they need and therefore allow them to maximize their potential and unlock further growth.”
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About Danone (www.danone.com)
Danone is a leading global food and beverage company operating in three health-focused, fast-growing and on-trend categories: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With a long-standing mission of bringing health through food to as many people as possible, Danone aims to inspire healthier and more sustainable eating and drinking practices while committing to achieve measurable nutritional, social, societal and environment impact. Danone has defined its Renew strategy to restore growth, competitiveness, and value creation for the long-term. With 100,000 employees, and products sold in over 120 markets, Danone generated
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