Baby Nutrition Growth Building Blocks

Baby Nutrition Division:
Our Growth Building Blocks
Christian NEU
Danone Baby Nutrition overview
Key financials
Geographical footprint (%)
Product mix (%)
(YTD)
(YTD)
Growth
2009E
Sales
2009E
€3 bn
+8%
LatAm
AME/Export
10
Asia
30
Eastern
Europe
13
Western
Europe
Margin
H1 09
19%
2
45
Food
27
Milk
73
Strong leadership positions
TOTAL #1 MILKS #1
TOTAL 141
2
1
2
Kazakhstan
1
13 2 1
1
1
1
1 11
2
1 2
2
1
2
1
Thailand
1
Malaysia 1
2
Singapore
Morocco
2
2
1
Tunisia
1 1
Present, with
or lower position
Source: Nielsen MAT July 2009 (Moving Annual Target August ’08 to July ’09) ,
IMS,and Internal data,
Note: Countries and selected groupings
Vietnam
1 Indonesia
Lebanon
1
2
2
4th
50+
1
2
1
40+
- CBU
35
- Export 106
1
Continuing to gain share in an attractive market
Market share performance
Global baby food market
CAGR
4.8% € 33.5 bn
€ 26.5 bn
(Danone universe, 12.4B€, MAT Sept ‘09)
2 7 .3
1 8 .3
28.
5
1 7 .9 Competitor 1
5 .2 Competitor 2
2009E
2014E
4 .6
4 .6
4 .4 Competitor 3
2 .4
0 .9
2 .3 Competitor 4
0 .9 Pr ivate Label
Sour ce: Global mar ket, Eur omonitor , Constant For ex 2 0 0 9 , constant pr ices
Danone Univer se, Nielsen M AT Sept‘0 9 (M oving Annual Tar get October ’0 8 to Sept ’0 9 )
Our growth building blocks
Synergies
Grow our
categories
Educate
Across
the full
pyramid
Our growth building blocks
2 Blockbuster models
Immunity
Superior Nutrition
€ 1.2 bn sales (2009E)
+ 14%
€ 1.1 bn sales (2009E)
+ 8%
Source : Internal estimates
Immunity
€ 1.2 bn sales (2009E)
+ 14%
Source : Internal estimates
Immunity: growing 3X as fast as the global market
Average growth
(Danone universe)
Total Market
Size
Value
Share
11%
Note: Danone Univer se
Competitor
1
Private
Label
5%
1%
Competitor
2
28%
18%
Source: MAT data, Global Share Update – sept ‘09
41%
Others
17%
Competitor
3
Competitor
4
2%
5%
Mix harmonization in progress
2005 - 2008
2009+
Strong, effective copies rolled-out worldwide
Asia
Rest of the World
GUM Party
(China)
IFFO
Scientist
GUM Party
(Indonesia)
GUM
Birthday
Video GUM party in Asia
Our vision: From a “Tutti Frutti” planet. . .
2008
. . .to a Blue One!
2011
Superior Nutrition
€ 1.1 bn sales (2009E)
+ 8%
Source : Internal estimates
Mix harmonization is in progress
2005 - 2008
2009+
Successful copies are rolled out globally
IFFO
IFFO
China
GUM
Video GUM Iron UK
We are rolling-out the Bebelac model
2008
Superioir Nutrition in 2010
2010
Our growth building blocks
Across
the full
pyramid
Indonesia: Strong offering across the pyramid
Indonesian market profile
Socio Economic Pyramid
11%
PCC (kg)
7.1
Danone
Brands
Price points
280
15%
180
22%
5.6
100
41%
0.8
11%
70
€ 305 mln Indonesian portfolio, 15% growth vs ly:
3 successful differentiated brands
SGM
Relaunch
Note: 2009E
Royal Nutrilon
Bebelac
Indonesia: Testing affordable Gizikita
Powder milk 30g
€ 0.14
Porridge in powder 35g
€ 0.10
China: Danone strengthened leadership position,
well-placed with brands across the key segments
Chinese market profile
Value and growth
Price
Index
173
Value
(YTD)
Super
Premium
Growth
(MAT)
Danone
Danone
brands
Position
Share (MAT)
vs LY
4.9%
1
15.2%
+330bps
+34%
1
18,7%
+270bps
59%
124
88
84
Premium
22%
-14%
Mainstream
-23%
Economy
-34%
15%
4%
Test market
2
28.8%
+520bps
-
Source: Nielsen MAT September’09 (Moving Annual target October 08 to Sept 09) and Internal data, YTD September 2009
Our growth building blocks
Grow our
categories
Key growth opportunity is to GET and to KEEP
consumers longer
Follow-On Growing-Up
Milk
Milk
Complementary Foods
TOMORROW
TODAY
Pregnancy
6+
12+
Babies have differentiated nutritional needs
Babies are not just small adults
Nutrition for babies must be different
(Vs adults)
7 X more iron
4 X more calcium
3 X more Essential Fatty Acids
10 X less proteins
3 X less sugar and salt
Video Nutrima Indonesia
Growing Up Milk (GUM):
addressing iron-intake deficiency
Toddler’s iron intake across many European
countries is insufficient
12
g/day
10
8
Recommended Daily Intake*
6
4
2 UK
France
Germany
Netherlands
0
1.5-4.5 yrs1
* EU Scientific Committee for Food. 1993
1. Gregory et al., 1995
2. Fantino & Gourmet., 2008,
3. ALexy & Kersting. 1999
4. Hulshof et al., 1998
1.5-3 yrs2
1-3 yrs3
1-3 yrs4
GUM: a major opportunity, specially in Europe
€3 bn market today: 77% in Asia
Singapore
Malaysia
Greece
Thailand
Indonesia
France
Poland
Vietnam
Spain
Argentina
Italy
China
Germany
Turkey
UK
Russia
114
75
70
44
22
GUM 0-3
GUM 3+
* staging unknown
21
13
6
€ 1.25 bn
opportunity
for DBN in Europe
6
(fair share)
13
10
6
2
1
1
1
Global average PCC (9 KG)
Food: a sizeable opportunity, specially
in Europe
€3.6 bn
market today: only 14% share of stomach
Finland
175
Italy
134
France
134
Germany
113
Netherlands
111
Poland
83
UK
55
Russia
50
Slovak
39
Switzerland
32
Turkey
6
Indonesia
3
DBN Universe average PCC (17 KG/Baby)
A wealth of choice within the portfolio
Breath and depth in the portfolio
Savoury
Fruits, Dairy
& Dessert
Cereals
Blédina case:
How to keep growing in an ever
challenging market?
France: The most developed European
Baby Food market
1,248
Biggest market in Europe
Value (€ mln)
888
741
740
661
589
430
185
France
Russia
Italy
Source: Nielsen july update
Spain
Germany
Poland
UK
178
155
Greece
Netherlands
Belgium
France: The most developed European
Baby Food market
The highest PCC (kg)
183
157
148
147
145
123
France
Spain
Italy
Source: Nielsen july update
Netherlands
Germany
Poland
123
122
Austria
122
Portugal
Greece
Blédina continues its outstanding performance
Blédina Sales increase
Market share performance
(Nielsen, value)
+3.7%
€ 439 mln
€ 423 mln
42.40
6.2
42.80
36.20
35.00
44.30
33.70
44.00 44.80
33.00
Competitor 1
46.00
47.30
49.50
27
31.30
29.10
25.90
22.60
Competitor 1
2002
2008
2009E
Source : Bledina France internal sales data, Nielsen October YTD
2003
2004
2005
2006
2007
2008
YTD P10
2009
The formula: Growing the category
with our two jewels
A wide range of foods and
milks (all meals and life
stages) up to 3 years old
High-level science milks
covering all babies’ key
functional benefits
Our growth building blocks
Educate
To grow our categories, we need to educate!
Education is a direct driver of GUM consumption
GUM pcc
(kg)
81%* (21 kg)
43% (13 kg)
12% (6 kg)
37% (6 kg)
= MAT GUM
Value sales
4% (4 kg)
2% (1 kg)
Source: HCP Toddler Research, Dec. ’08, Internal market share reporting. * Paediatricians
% HCP , “Frequently Recommend”
GUM Toolkit
BABY PEDIA
Educate
internally
Educate
Health Care
Professionals
1
Educate
mums
2
3
4
Educate
authorities
(Regulatory & KOL’s)
Our growth building blocks
Synergies
Synergies within Danone – a few examples
Rolling out
successes
Media buying
GUM powder and liquid
Plates – across Europe
Immunity cereals
More GRPs and more effective
advertising
- Russia, Germany, Argentina, Turkey, Poland, Austria
Salesforce/
Merchandising
Brazil, Argentina, Turkey
Danone brand
Aptamil in Brazil
Joint offices
Indonesia, Portugal
Our growth building blocks
Synergies
Grow our
categories
Educate
Across
the full
pyramid