Dannon US

DANNON US
MARIANO LOZANO
GENERAL MANAGER DANONE NORTH AMERICA
QUICK UPDATE ON CURRENT SITUATION
Competitor 1
Competitor 2
Source: IRI data: MULO (includes Food, Drug, Mass, Walmart, Club (Ex Costco), Dollar, and Military). 4 Week
ending May 25, 2014
LIFE OF THE US CONSUMERS IS DEFINED BY THESE MACRO TRENDS
OBESITY EPIDEMIC
2/3
›
›
›
›
overweight or
obese
SNACKING
90
%
snack through
the day
CONVENIENCE/FREEDOM
Less Fuss
Less Mess
On-the-Go
Bite-size
DESIRE FOR HONEST, SIMPLE FOODS
70
%
interest in local
foods/farmers’
markets
Yogurt,
the food trend
of the decade
YOGURT IS SHOWING STRONG AND CONSISTENT GROWTH
Yogurt continues to grow
in value
Yogurt $ Sales (in Bn) and Growth vs YAG
+6.4%
…And is making major
contributions to total store
Fastest growth among top 15
edible categories
+7.7%
+7.2%
+10.9%
5,5
2010
6,1
6,6
7,1
7,2
#2 in absolute dollar growth
Larger than many iconic
categories
2011
2012
2013
L52W
DANNON IS DRIVING THE YOGURT GROWTH
Dannon growth exceeds
category
Dannon is the leading market
force
Dannon $ Sales (in B)
1,6
1,6
1,8
2,0
2,0
Market Share Evolution
40%
30%
2010
2011
2012
2013
L52W
Growth vs YAG
Competitor 1
20%
2011
2012
2013
L52W
Yogurt
+10.9
+7.2
+7.7
+6.4
Dannon
+2.9
+9.0
+11.3
+9.8
Competitor 2
10%
2011
2012
2013
YTD 2014
The Greek Yogurt
EXPLOSION
Greek Yogurt Food
DOMINATION
Greek-Yogurt CRAZE
Greek Yogurt Causes a STIR
With Triple-digit Gains
Greek Yogurt Has Been All The RAGE
GREEK YOGURT HAS BEEN A MAJOR ENGINE OF GROWTH
Greek claims nearly half of category dollars
$ Share and Growth Rates of the Greek segment
12%
CY2010
+116%
23%
+62%
CY2011
34%
+41%
CY2012
Greek
45%
CY2013
+30%
47%
L52 Weeks 2014
Non-Greek
Protein/Filling
Price per Pound
Balance of
Health & Taste
Greek: $3.0
Regular: $1.7
Authentic/
Special
1.7x
DANNON IS A STRONG PLAYER IN THE GREEK SEGMENT
Dannon has rapidly gained share
in Greek
35%
Competitor 1
33%
9%
9%
2012
Source: IRI data
2013
YTD 2014
Competitor 2
Competitor 3
With a portfolio of strong brands
WHAT DOES THE FUTURE HOLD?
PILLARS OF DANONE / DANNON’S FUTURE GROWTH
01
02
03
Working with
retailers
Engaging with
our partners
Innovation
Consumer
Engagement
Category
Advocacy
PILLARS OF DANONE / DANNON’S FUTURE GROWTH
01
02
03
Working with
retailers
Engaging with
our partners
Innovation
Consumer
Engagement
Category
Advocacy
INNOVATION WILL MEET NEW MOMENTS OF CONSUMPTION
Indulgence
Cheesecake Inspired
On-the-go
Puddings
Light & Fit Protein Shakes
Danimals Squeezables
INNOVATION WILL EXPAND DANNON’S REACH BEYOND FRESH
YOGURT IN A 10B MARKET
Frozen is a highly incremental business,
with encouraging initial results
$ Share of Frozen Yogurt
9,4
5,4
5,3
Mar 30
Apr 6
Apr 13
Dannon Oikos
Source: IRI data
Apr 20
Apr 27
B&J Greek FY
May 4
May 11 May 18
Healthy Choice Greek FY
INNOVATION AT STONYFIELD / REFOCUSING ON STRENGHTS
From: All Greek, all the time
To: Win big in Baby & Kids
INNOVATION AT STONYFIELD / UNLOCK YOKIDS FULL POTENTIAL
First to launch refrigerated yogurt pouches
Partnered with
First ever presenting sponsor of
Disney on Ice and Disney Live
INNOVATION AT STONYFIELD / NATURAL CHANNEL
PILLARS OF DANONE / DANNON’S FUTURE GROWTH
01
02
03
Working with
retailers
Engaging with
our partners
Innovation
Consumer
Engagement
Category
Advocacy
DANNON IS ENGAGING WITH CONSUMERS IN NEW WAYS,
BREAKING CATEGORY NORMS
First to advertise in SuperBowl
Pursuing new ways to engage
with consumers
Industry Ratings
 Ranked #2 in Hulu’s
“Celebrity Cameos”
 Ranked #5 in Entertainment
Weekly’s “Most Liked Ads”
Share of Voice
Social Sharing
 Oikos dominated Chobani
with 84% share of voice
online
15%
 Ranked #4 in The Daily
Beast
1%
84%
Oikos
6MM YouTube views!
10:1 Praise to Dislike
Ratio!
Chobani
Yoplait
 Oikos made the “Top 10
Most Tweeted About
Commercials” with 548
tweets per minute
 Trended on Twitter
Worldwide
DIGESTIVE HEALTH IS A TOP CONCERN IN THE US,
ACTIVIA HAS A HUGE OPPORTUNITY TO GROW
Many Americans have experienced minor
Digestive Health issues
Activia has significant opportunity to reach
people who are concerned with DH
52.0%
6 in 10
Yogurt users have experienced
digestive issues in the P3M
Δ 34.4 pt
17.6%
Activia Penetration
Source: Health & Ingredient Monitor 2012 , ECI Research 2013 Segmentation, IRI Panel latest 52 weeks ending 5.18.2014
Yogurt users who are
concerned with Digestive
Health
NEW ACTIVIA BENEFIT DRIVING RELEVANCE TO A GREATER
AUDIENCE
Digestive Issues: Bloating, Gas, Discomfort, Rumbling
2X
Scientific dossier preparation
(April 2013)
Experts validation
(August 2013)
Activia may help reduce the frequency of minor digestive issues like bloating, gas, rumbling and
discomfort when consumed twice a day for 4 weeks as part of a balanced diet and healthy lifestyle
Source: Activia A&U 2010
PILLARS OF DANONE / DANNON’S FUTURE GROWTH
01
02
03
Working with
retailers
Engaging with
our partners
Innovation
Consumer
Engagement
Category
Advocacy
DANNON IS INVESTING INTO GROWING THE CATEGORY AND
INFLUENCING POLICY MAKERS
Yogurt category growth initiative
Key
Opinion
Leaders
Dietary
Guidelines
Dannon
Ambassador
Program
Retail
Activation
PILLARS OF DANONE / DANNON’S FUTURE GROWTH
01
02
03
Working with
retailers
Engaging with
our partners
Innovation
Consumer
Engagement
Category
Advocacy
WE HAVE REINVENTED OUR SALES ORGANIZATION TO DRIVE
CATEGORY GROWTH
People
Right People
Capabilities
Right Structure
Retail Organization
Top-down & Bottom-up
Evolving model
Best in the Industry
Shopper’s 1st Choice
The Right Products at the Right time
PEOPLE: DANONE HAS BUILT STRONG SCALE WITH
A CUSTOMER 1ST APPROACH
2003
2014
Danoners => 81 in Retail, 23 in Food Service
Danoners => 167 in Retail, 36 in Food Service
(250 Associates)
(Broker)
+
&
(2,500 In-store)
+
CAPABILITIES: DRIVING THE CATEGORY VIA INSIGHTS…
A STEP CHANGE IN THE WAY WE OPERATE
Category
Sales Planning (PRGM)
Sales Execution
Assortment Op Tools
Merch & Display Tools
A
P
M
S
RETAIL APPROACH: A CUSTOMER 1ST MENTALITY LED TO A NEW
ORGANIZATION… A PROXIMITY MODEL
Central Division
East Division
Kroger Division
West Division
South Division
Walmart/Sam’s
Division
WINNING IN CITIES
New England
Seattle
Mineapolis
3.6MM
Population
Portland
Population
#2
18.1%
San Fran/Oakland
Population
#1
22.4%
Los Angeles
17.5MM
Population
#2
23.1%
Denver
3.8MM
Source: IRI data
6.5MM 19.7MM
Population
Detroit
4.8MM
Population
Population
#2
21.1%
#1
29.7%
Phoenix
4.9MM
Population
6.5MM
Population
markets
#1
30.2%
Atlanta
5.1MM
Dallas/Ft Worth
#1
31.8%
Population
Houston
6.1MM
Population
#1
31.9%
Population
Population
9.1MM
#1
in 7
Philadelphia New York
Chicago
#2
26.0%
2010
#2
23.8%
#2
17.8%
#2
26.1%
#1
24.5%
Population
Boston
5.6MM
Population
Population
3.3MM
3.2MM
6.3MM
3.3MM
#1
27.3%
#1
30.8%
#1
27.9%
South Carolina
5.2MM
Population
#1
32.0%
Orlando
Balt/Wash
8.4MM
Population
#1
30.0%
3.3MM
Population
#1
29.8%
Miami/Ft Lauderdale
5.8MM
Population
#1
31.0%
YTD May
2014
#1
in 46
markets
PILLARS OF DANONE / DANNON’S FUTURE GROWTH
01
02
03
Working with
retailers
Engaging with
our partners
Innovation
Consumer
Engagement
Category
Advocacy
KEY RELATIONSHIPS
Partnerships
Offerings
Vendors
FUTURE RELATIONSHIPS?
IN SUMMARY
1
Yogurt continues to be on trend, and Dannon is
fueling the growth.
2
Leveraging existing assets (Oikos, Activia, Light n’Fit),
Greek has been the engine of growth, still has
potential.
3
Driving Innovation thru new moments (indulgence, on
the go, enjoyment), new markets (frozen), wining in all
segments (kids, light)
4
Building on Partnerships (Starbucks, Kellogg’s, Disney
and the likes…)
THE CHALLENGE TAKES THE RIGHT TEAM
=
in times
of crisis
it takecommitted
a committedteam
team to
It takes
a strong,
turn around the business
to accelerate our business
THE MISSION OF OUR FOUNDER TO BRING HEALTH
TO AMERICANS…
…is a path to our growth