DANONE LTDA IN PACKAGED

FOOD (BRAZIL)
Euromonitor International
January 2015

DANONE LTDA IN PACKAGED FOOD (BRAZIL)

LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1
Key Facts ..................................................................................................................................... 1
Summary 1
Summary 2

Danone Ltda: Key Facts ............................................................................... 1

Danone Ltda: Operational Indicators ............................................................ 1

Company Background .................................................................................................................. 1

Production .................................................................................................................................... 2
Summary 3

Danone Ltda: Production Statistics 2014 ..................................................... 2

Competitive Positioning ................................................................................................................ 2

Summary 4

Danone Ltda: Competitive Position 2014 ..................................................... 2

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DANONE LTDA
STRATEGIC DIRECTION
Danones strategic direction in 2014 remained very similar to the strategy adopted the
previous year, which was based on launching new products, new formats and new flavours, in
order to attract consumers attention, to increase market share and value growth. The
company continues to make large marketing investments in television advertising and product
promotion to increase brand awareness in all categories, from yoghurt to baby products,
including baby milk formula.

KEY FACTS
Summary 1
Danone Ltda: Key Facts
Full name of company:

Danone Ltda

Address:

Av Paulista 2300, 5 Andar, So Paulo, SP,

Brazil

Tel:

+55 (11) 2192 4600

Fax:

+55 (11) 2192 4600

www:

www.danone.com.br

Activities:

Producer of long-life/UHT milk, yoghurt, dairybased desserts, fromage frais and quark,
bottled water, convalescence products and
baby milk formula

Source:

Euromonitor International from company reports, company research, trade press, trade sources

Summary 2

Danone Ltda: Operational Indicators

2011
2012

2013

Net sales

BRL1,400.0 million

BRL1,700.0 million

BRL2,000.0 million*

Number of
employees

1,750

n/a

n/a

Source:
Note:

Euromonitor International from company reports, company research, trade press, trade sources
* estimates

COMPANY BACKGROUND
Groupe Danone entered dairy in Brazil in 1970, with the purchase of the locally-owned LCP
dairy. The subsidiary of the France-based group, Danones core business is dairy, particularly
yoghurt, dairy-based desserts and flavoured fromage frais and quark.
Locally, Danone sold its Poos de Caldas division (which concentrated mainly on cheese),
and sold the Paulista brand to Parmalat Brasil in 2008. Parmalat signed an agreement with
LBR Lcteos to produce and distribute under licence important brands such as Parmalat and
Glria in December 2010. On the other hand, Groupe Danone acquired Royal Numico,
Europes largest manufacturer of baby milk formula and nutritional products.

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In March 2011 Danone expanded its portfolio within yoghurt to include Densia, positioned as
a product which provides 50% of the recommended daily calcium. The product is mainly
positioned to target women.
With tougher competition in yoghurt, Danone relaunched the first yoghurt introduced in the
country in the 1970s under the slogan The True Danone. To promote Danone yoghurt, the
company invested in an advertising campaign using the sentimental appeal of showing young
consumers eating the yoghurt decades ago, and the same consumers eating the yoghurt
nowadays, showing that they continue to appreciate the brand.

PRODUCTION
Danone has two industrial plants in Brazil, one in Poos de Caldas (Minas Gerais), and the
recently opened site in the northeast city of Maracana (Cear).
It invested BRL50 million in the facility at Poos de Caldas to initiate the production of yoghurt
in1.35-litre PET bottles. Danone expects to invest in larger packaging at a lower price to
target lower-income consumers.
Summary 3
Location

Danone Ltda: Production Statistics 2014

Brand

Annual production

Poos de Caldas (Minas

Gerais)

Danone, Activia, Corpus,

DanUp, Danoninho, Danette,
Densia

300,000 tonnes

Maracana (Cear)

Danone, Danoninho

48,000 tonnes

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

COMPETITIVE POSITIONING
Danone continued to lead dairy in 2014, due to the high penetration that the company has,
mainly because of its strong position in yoghurt and sour milk products. The company held the
leading position in this category with a value share of 37% in 2014, powered by the brands
Danoninho, Grego, Danio, Dan Up and Danette.
In order to increase its penetration in baby food, in 2014 Danone introduced a line expansion
for the Milnutri brand, with Milnutri Cereal, to compete in dried baby food, which is available in
four flavours: rice, banana and apple; rice with oatmeal; plain rice; and corn.
In 2014 Danone introduced a new packaging format for DanUp, which consists of a plastic
shaker with lid, in which the consumer can shake the yoghurt before drinking it, providing a
smooth and rich beverage. This new DanUp version comes in three flavours: banana,
lemonade and strawberry.
Summary 4
Product type

Danone Ltda: Competitive Position 2014

Retail value share

Rank

Packaged food

3.0%

Dairy

11.4%

Meal replacement

1.8%

Baby food

4.8%

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DANONE LTDA IN PACKAGED FOOD (BRAZIL)

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews

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