Danone is a global company committed to achieving health through food. The company operates through four divisions: Fresh Dairy Products, Waters, Early Life Nutrition, and Medical Nutrition. Danone’s fresh dairy products division represents approximately 50% of the company’s sales. Dannon, one of Danone’s yogurt brands, produces more than 1/3 of the yogurt sold in America.
Danone’s commitment to producing healthy products with limited environmental impact is rooted in its ‘Nature 2020’ plan, which addresses four areas: climate, water, packaging, and agriculture. The plan sets a target to halve its carbon footprint by 2020 and to achieve zero net emissions by 2050. Danone is also committed to eliminating deforestation impacts from its supply chain by 2020, and has begun to minimize this risk by purchasing 100% fully segregated palm oil that is certified by the Roundtable on Sustainable Palm Oil (RSPO). Yogurt brand Dannon recently established direct relationships with farms that supply milk. This allows the company to dictate animal welfare standards and work to improve and conserve soil and water on supplier farms. Danone has joined together with nine other large companies in the Livelihoods Fund, whose mission is to invest in large projects to restore natural ecosystems. In addition, the company is committed to nutritional improvements and in 2014, 30% of products sold had been improved for reduced fat, sugar, salt, etc. over the previous three years.
Danone recently came under scrutiny after it allegedly paid Indonesian health workers to promote its infant formula as a substitute for breastfeeding. The company was fined for anticompetitive practices, too.
Industry: Consumer Staples
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.