B. Hours - Managing a winning portfolio

Managing a
winning portfolio
Bernard Hours
Rewind
–2–
2008-2010: Historical move to boost our sales
Group Sales
18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
Baby & Medical
2 000
0
…
1998
–3–
2007
2008
2009
2010
Fresh Dairy Products: Over € 10 bn sales
Fresh Dairy Products Sales
Consolidated sales in K€
11 000
10 000
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2001
2002
–4–
2003
2004
2005
2006
2007
2008
2009
2010
Waters: Back to growth
Waters Sales
Life for Like Sales growth
6,0%
5,0%
4,0%
5.3%
3,0%
2,0%
4.0%
1,0%
1.9%
1.0%
0,0%
2007
–5–
2008
2009
2010
Baby Nutrition: growth potential confirmed
Baby Nutrition Sales
Consolidated sales in K€
3 550
3 350
3 150
2 950
2 750
2 550
2 350
2 150
1 950
1 750
2007
–6–
2008
2009
2010
Medical € 1 bn: change of scale
Medical Nutrition Sales
Consolidated sales in K€
1 100
1 000
900
800
700
600
500
2007
–7–
2008
2009
2010
2007:
2007: a historical move to reach out
for more consumers
High
Specific nutrition/health needs
High
Low
Baby
Low
Toddler
Childhood
Life stage
–8–
Adulthood
Elderly/
pathology
Leading to A COMPLETE AND WINNING
BRANDS PORTFOLIO
SHARP HEALTH
HEALTHY NUTRITION
PLAISIR/INDULGENCE
Specific healthy conditions
Healthy living & best nutrition
Health as a Reassurance
–9–
Supported by a very specific R&D model
SHARP HEALTH
HEALTHY NUTRITION
PLAISIR/INDULGENCE
R & D
Consumer has
Specific healthy conditions
– 10 –
Different needs
Healthy living & best nutrition
Health as a Reassurance
Research: scientific rigor in Danone laboratory
Ongoing scientific investigation
to strengthen current benefits
and find new ones
R
Clinical studies and scientific papers
Publication Danone-Harvard PNAS
GMPP
Bifidobacterium animalis subsp. lactis fermented
milk product reduces inflammation by altering a
niche for colitogenic microbes
Strong network of partnerships and collaborations
– 11 –
Development: magician competences
in Danone kitchen
Constantly innovate on product line
extensions and new launches
D
Continuously improve taste
in obsession for excellence
Multiply textures and play with ingredients
– 12 –
With an extended geographical coverage
and strong local leadership
Eastern Europe
Western Europe
Dairy Product
#1
#2
Waters
Baby Food
#1
Medical N.
#1
Dairy Product
#1
Baby Food
#1
Medical N.
#1
North America
Dairy Product
#1
Asia Pacific
LATAM
Africa Middle East
Dairy Product
Waters
#1
#1
Dairy Product
#1
Baby Food
#2
Market share 2010
– 13 –
Waters
#1
Baby Food
#2
Play
– 14 –
The Danone “winning” model
We have 3 weapons
MICRUBs
LABs
People Organization & Mindset
– 15 –
MICRUB
MEXICO
I NDONESIA
C HINA
R USSIA
U SA
B RASIL
– 16 –
MICRUB: our trump for today
Sales
Growth
> 35%
– 17 –
> 60%
People
60%
MEXICO
Fresh Dairy Products
Dan’Up
Activia
– 18 –
Danonino
MEXICO
Market share Fresh Dairy Products
Volume share
44.1%
40.1% 38.9%
38.1%
36.9%
35.9%
35.3% 34.5%
23.0%
18.5%
19.1%
17.9%
17.3% 18.3%
13.1%
41%
23.1%
22.0% Competitor #1
19.5%
15.5% 17.0%
15.2%
16.2%
16.9%
15.9% Competitor #2
9.7%
6.8%
2002
2003
2004
– 19 –
2005
2006
2007
2008
2009
2010
MEXICO
Waters
Booming HOD business
Diversified product ranges
Sales
2004
– 20 –
2005
2006
2007
2008
2009
2010
MEXICO
Market share Waters
Volume share (Bottles + HOD)
29%
Competitor #1
Competitor #2
27%
22%
19%
17%
12%
2004
14%
2005
– 21 –
2006
2007
2008
2009
2010
INDONESIA
Baby Nutrition
Nutricia & Sari Husada
Superpremium
Premium
Mainstream
Affordability
– 22 –
INDONESIA
Leader on the 2nd Asian Baby Nutrition Market
Value Share
38.6%
34.3%
32.3%
31.4%
29.5%
23.7%
23.5%
24.0%
23.2%
23.9%
Competitor #1
11.1%
10.2%
2006
10.1%
2007
– 23 –
2008
9.6%
2009
9.2%
2010
Competitor #2
INDONESIA
Waters
Large Products range
Nature Origin uniqueness
Icon Status
“The sign of me”
By Sebastian Gunawan
– 24 –
CHINA
Waters
+50%
Mizone
Brand promotion
Sampling
TV
“Enjoy my pulse
of life”
Digital
Distribution
New drinks concept born in Asia
– 25 –
RUSSIA
#1
JV Danone Unimilk:
#1 in Fresh Dairy Products
#1
#2
North West
Siberia
Oural
Moscow
+Center
Ukraine
#1
And #1 in Baby Nutrition
Volga
44%
South
#1
42%
40%
38%
Competitor #1
36%
34%
#2
– 26 –
32%
Jan Fev Mars Avr
'10 '10 '10 '10
Mai Juin Juill Aou Sept Oct Nov Dec
'10 '10 '10 '10 '10 '10 '10 '10
RUSSIA
Danone Unimilk
Leverage Baby
Rich brand mapping covering all price segments
and consumers need
Premium
Basic
Affordable
All family
– 27 –
Pleasure
Health
Kids & Teens
USA
A consolidated business leader on Fresh Dairy Products
35% market share (value)
Complementarity Strategy
– 28 –
Visible in our product range
BRAZIL
Initiatives accorded to the local identity
More than a Lab: A Pioneer
From Hospitals
To the community
Strong brands
Worldwide
OTX
And locals
– 29 –
BRAZIL
Long term & stronger leader
on Fresh Dairy Products
32.9 %
29.8 %
26.9 %
30.5 %
2004
33.2 %
35.8 %
25.9 %
22.8 %
13.3 %
32.6 %
34.1 %
13.4 %
2005
– 30 –
13.6 %
2006
Competitor #1
21.3 %
14.4 %
2007
22.4 %
13.5 %
2008
22.4 %
12.4 %
2009
21.1 %
Competitor #2
11.0 %
2010
Danone Winning Model
DANONE LABs
NEVER STOP TRYING
– 31 –
Testing the future: New channels
Yoghurteria
New retail model
Expand Danone experience
into new and personalized
ways of enjoying Yoghurt
– 32 –
Danone Winning Model
People Organization & Mindset
– 33 –
A multi centric, highly connected organization
Adaptability
Multiplicity
+
connections
=
Reactivity
Amsterdam
Paris
Barcelona
New York
+ success
Moscow
Shanghai
Singapour
Sao Paulo
Buenos Aires
– 34 –
+ intelligence
+ best practices
+ synergies
+ knowledge
State of Mind
Moving by nature
No dogma: “Jeu de Jambes”
Curiosity
Uncommon Energy
– 35 –