Please enable JS and disable any ad blocker He said: "Welcome to the future of Shanghai – a future where technology and innovation have transformed personalized health into a seamless part of everyday lives in the city a city that has become the epitome of this transformation is monitored and optimized for our well-being "Your smartwatch will analyze your sleep data and offer tips to help you get high-quality rest every night you receive real-time recommendations for meals that not only satisfy your taste buds but also enhance your health Smart kitchens equipped with AI-driven appliances prepare meals with precision "Public spaces in Shanghai are transformed into interactive health stations Imagine parks where fitness equipment adapts to your specific need Interactive kiosks provide real-time wellness and mental health recommendations as well as tips for healthy hydration – one of Danone's core categories in the country We can also envision that these kiosks provide dietary advice for all ages which is increasingly critical as the population ages – and our early life nutrition The goal: to ensure every citizen has access to the resources they need to thrive But this future isn't just about gadgets and machines It's about the seamless integration of technology into our lives empowering us to take control of our health like never before." 1.Comments will appear only after being approved by our team so it might be a while before your comment is posted 2.In accordance with the Regulations on Internet News and Information Services and other related laws and regulations of the People's Republic of China comments should not contain anything that is obscene Please [ Login ] to leave a comment. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world Danone is in the third year of a turnaround effort after a governance crisis saw its former chairman and CEO ousted “We help muscular mass, muscular recovery, we help our gut health,” Antoine de Saint-Affrique said in an interview with Bloomberg TV. “Our products are very complementary to the anti-obesity products, they are healthy products.” Essential digital access to quality FT journalism on any device Complete digital access to quality FT journalism with expert analysis from industry leaders Complete digital access to quality analysis and expert insights complemented with our award-winning Weekend Print edition Terms & Conditions apply Discover all the plans currently available in your country See why over a million readers pay to read the Financial Times Burberry Group has announced the appointment of Stella King as an independent non-executive director and member of the nomination committee The company said that King is currently at Moncler which she joined thirteen years ago in 2011 as president In January 2022 she moved to the role of chief Chinese business officer and will step down from that role on December 31 Commenting on King’s appointment to the board said in a statement: "Stella has an impressive and deep understanding of the luxury market and consumers in the Asia Pacific region Her insight and expertise will be a great asset to Burberry." She also served as a non-executive director of Moncler subsidiary Stone Island between March 2021 and April 2024 Asia Pacific for Sergio Rossi and also held various managerial positions at Lane Crawford in Mainland China The company added that Fabiola Arredondo and Antoine de Saint-Affrique will retire from the board as non-executive directors following the AGM to be held in July 2025 Arredondo has served as a member of the remuneration and nomination committees since her appointment on March 10 She is a former chair of the remuneration committee and has also served as a member of the audit committee Antoine de Saint-Affrique joined the board on January 1 2021 and has been a member of the audit and nomination committees since that date I want to thank Fabiola and Antoine for their service to the company The Board has benefitted greatly from their extensive knowledge and experience throughout their tenures," added Murphy with health and nutrition front-and-centre with a particular focus on gut health and protein Danone is “back in the game” on market-share-boosting investment as the French giant aims for volume-led sales growth and improved margins CEO Antoine de Saint-Affrique laid out the groundwork at Danone’s annual capital markets day but disappointed investors by maintaining the company’s “mid-term” like-for-like sales growth target at 3-5% The Activia and Evian maker’s “long-term ambition” to achieve €3bn ($3.2bn) in free cash flow was Getting there will come from “absolute earnings” through a combination of sales growth and margin “Our ambition is to get to this level of €3bn because it will change everything for our company It’s not important if that happens in ‘27 What is important is that we are getting to that level in a way that we can structurally travel beyond that line because it makes the value-creation potential real,” he explained finance chief Juergen Esser said growth will largely be driven by volume and mix “Reinvestment was important to get not only our market shares to where they should be and I think we are getting on a good track but also to have our categories going back to strong growth,” Esser said Don’t let policy changes catch you off guard Stay proactive with real-time data and expert analysis He added: “The pace at which our gross margin is going to expand is a function of the pace of our volume/mix growth under the assumption that pricing is here to neutralise net inflation in our COGs the faster we go expanding gross margin because it will drive operating leverage and this goes across the different categories.” De Saint-Affrique suggested Danone is gathering momentum in winning back market share and cementing its position as a category leader in dairy “We are progressively back in the game” on investment you invest into the growth in your category You don’t wait for your category to grow you drive the penetration of your category.” And within the company’s Specialised Nutrition division De Saint-Affrique emphasised the increasing importance of health in global food and beverage companies’ portfolios with the risk of being left behind if not embraced “We are right at the heart of where we think foods is going which indeed increases the resilience of the company,” he said noting the pressures from various countries imposing “tax” measures on unhealthy products you look in a number of cases at the pressure that the regulator is putting on the companies that don’t provide healthy products “You see a movement that is happening that will accelerate in our view as our non-communicable diseases are exploding There will be a very clear divide between the companies that are providing you food that either prevents or helps maintain – the good news is we have a healthy portfolio.” Industry analysts at Barclays wrote in a research note: “We continue to believe that Danone will be a relative winner in the food industry Danone is about delivering consistently and its strategy of delivering health through food very much makes sense given a rapidly changing food industry.” They added with respect to free cash flow: “Danone has been in the past a €2bn FCF company so if this is delivered it would be a 50% step-up in the cash-flow power of the company with all the benefits that brings in terms of deleveraging.” with an improving return on investment (ROIC) and a return to positive territory in volume/mix (down 0.4% in 2023) opening the door “It’s time to be on the front foot,” de Saint-Affrique said The CEO did not specify any potential product areas for acquisitions but medical nutrition was emphasised as a key strategy during the capital markets day “We will see a rebalancing between medical nutrition on the one hand It doesn’t mean we want to slow down in early life nutrition medical nutrition should go faster than our early life nutrition.” Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation This is your chance to showcase your achievements Don't miss the opportunity to be honoured among the best - submit your nomination today Give your business an edge with our leading industry insights View all newsletters from across the GlobalData Media network Danone is in the midst of a meaningful period of upheaval in both its business and executive ranks, punctuated by the removal of its CEO amid investor discontent with the company's underperforming brands and lackluster share price. Véronique Penchienati-Bosetta, the head of Danone International, and Shane Grant, who is the CEO of its North America operations have run the business while the company searched for its new chief They will continue to run the company until de Saint-Affrique takes the job "Danone has significant potential to continue to shape and contribute to how people eat and drink globally," de Saint-Affrique said has a "strong and innovative portfolio of brands." water and baby food that populate large swaths of the grocery store activist investors including Artisan Partners Asset Management Causeway Capital Management and Bluebell Capital Partners have called for changes "The underperformance of Danone's share price has been driven, in our view, by a combination of poor operational track record and questionable capital allocation choices," Bluebell wrote in a November letter to Danone's lead independent director The choice of de Saint-Affrique as CEO gives Danone a seasoned food executive who has spent nearly the past six years running chocolate ingredients provider Barry Callebaut including four years as president of its foods division De Saint-Affrique has valuable international experience that will come in handy running Danone's expansive global footprint one of the world's top manufacturers of high-quality cocoa and chocolate products has been working to grow sales and set high standards for innovation and environmental and social responsibility which placed a major focus on its environmental such expertise and insight from de Saint-Affrique could be immensely valuable he will have to deal with critics who have said Danone has focused too much on its environmental and sustainability efforts at the expense of its financial performance could come in rejuvenating sales and fending off stiff competition Danone is facing pressure from General Mills' Yoplait, Greek yogurt maker Chobani, as well as countless startups. The bottled water category is inundated with scores of big-name and private-label brands. This includes Nestlé, which recently sold its North American bottled water business to focus on its international premium brands healthy hydration products and functional water Danone has a huge presence in plant-based offerings, which it doubled down on with its $12.5 billion purchase of WhiteWave in 2017 But Danone is facing strong competition from other CPGs and smaller firms in this growing category The company is in the process of conducting a strategic review of its portfolio of brands, SKUs and assets. It recently sold its stake in China Mengniu Dairy for $2 billion and plans to use the money to repurchase its shares It's also assessing the future of its plant-based protein powders brand Vega and its assets in Argentina as well as divestitures of other businesses or brands could give de Saint-Affrique a more focused portfolio and the cash windfall he needs to invest in Danone's offerings and deal with a surge in input costs for the business Get the free daily newsletter read by industry experts Smucker are among the CPG giants leveraging the brand equity of well-known products to expand into different categories Health and Human Services Secretary Robert F wants companies to voluntarily remove or replace commonly used synthetic colors before the end of 2026 The free newsletter covering the top industry headlines please click the box below to let us know you're not a robot Get the most important global markets news at your fingertips with a Bloomberg.com subscription. 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Antoine de Saint-Affrique is a man who doesn’t let himself Since becoming the CEO of French food and nutrition giant Danone in September 2021 the 58-year-old executive has delivered some uncomfortable truths Saint-Afrique has clearly called out the company’s underperformance compared to peers while remaining confident that Danone is operating in the right categories and has what it takes to win In conversation with IMD President Jean-Francois Manzoni he talks about his quest for constant learning and renewal and his drive to create room for budding talents to emerge and thrive within the organization 1 May 2025 • by David Bach, Felix Zeltner in Podcasts IMD President David Bach explains the vital importance of the partnership between the US government and the elite research universities 17 April 2025 • by David Bach, Felix Zeltner in Podcasts This episode takes you behind the scenes of a recent gathering led by the World Business Council for Sustainable Development together with IMD where David Bach sat down with two sustainability leaders... 11 April 2025 • by Jim Pulcrano in Podcasts IMD's Jim Pulcrano interviews Ruchita Sinha General Partner of venture capital firm AV8 Ventures and explores her approach to early-stage investing 8 April 2025 • by Adrian Dellecker in Podcasts Join Mariana Sarmiento of Terrasos and Adrian Dellecker, a Senior Researcher at IMD, as they discuss commercial prospects in environmental innovation and voluntary biodiversity credits.... InstagramYouTube iconYouTubeFacebook iconFacebookTwitter iconTwitterI by IMD is produced by the Institute for Management Development Explore first person business intelligence from top minds curated for a global executive audience News & Analysis on Food & Beverage Development & Technology 18-May-2021 Last updated on 18-May-2021 at 12:35 GMT After weeks of speculation in the French press, Danone has named Antoine de Saint-Affrique as its new Chief Executive, effective 15 September. De Saint-Affrique comes to Danone from Barry Callebaut, where he initiated a planned succession and announced his intention to leave the chocolate supplier in April of this year. Prior to his spell at Barry Callebaut, the executive headed up the Foods division at Unilever. De Saint-Affrique joins Danone after a period of uncertainty that saw the ousting of long-time Chairman and Chief Executive Emmanuel Faber. In March, Danone’s board of directors bowed to pressure from activist investors and announced that Faber would leave the company with immediate effect. Activists cited governance issues (holding both Chairman and CEO posts) and perceived business underperformance as cause for the backlash against Faber. Danone benefits from a strong position in health and wellness foods. It is the owner of leading yogurt brands Activia and Actimel and has a desirable footprint in plant-based products through Alpro in Europe and Silk in the US. Activist investors argued that these strengths have failed to translate to superior sales and profits. Danone did not to achieve targets, set in 2017, for organic sales growth of 4-5% and an operating margin of 16% by 2020. In October, the company unveiled a new strategic plan with somewhat less ambitious goals. A month later, the group revealed 2,000 job cuts and the adoption of a local regional structure in an effort to generate cost savings of €1bn - an initiative Danone has dubbed Local First. However, this cost-cutting spree failed to satisfy Faber's critics. The clash between the Frenchman and outspoken investors was also widely chalked up to the former’s commitment to driving Danone’s sustainability agenda. Faber, who took over as Danone CEO in 2014, was one of the most vocal advocates in business for a more responsible capitalism, where businesses serve the interests of shareholders, the environment, its partners in the supply chain and society at large. When they approved the change in the company’s legal status to entreprise à mission last year, he famously quipped to shareholders that they had ‘toppled the statue of Milton Friedman’. Some quarters believe that this multi-stakeholder outlook came at the expense of top line growth, business execution and, at the end of the day, shareholder returns.  So, what does de Saint-Affrique’s appointment suggest about the future direction of the French Alpro-to-Activia manufacturer? Announcing the news, Danone Chairman Gilles Schnepp said that de Saint-Affrique is ‘the best person’ to ‘lead Danone through the next phase of our evolution’. “This marks a new chapter of leadership and a continuation of how we, as a Board, have been transitioning governance at the company for a few weeks already. We unanimously agree that Antoine de Saint-Affrique is a standout leader in the consumer goods world. He has a distinguished track record of innovation and delivery. Importantly, he brings the right blend of strategic vision, international consumer goods experience, and operational execution skills to Danone.” Indeed, if we look to the strategic direction spear-headed by de Saint-Affrique during his time at Barry Callebaut, a focus on ‘innovation and delivery’ is evident. Since 2015, when he took the helm, Barry Callebaut Barry Callebaut has focused on a disciplined execution of its growth strategy, while building capacity and strengthening its business model to boost performance. The company’s four strategic pillars are: expansion, innovation, cost leadership and sustainability. Under de Saint-Affrique, Barry Callebaut was able to balance improved business execution with an evolving sustainability drive. This year, for instance, the Carbon Disclosure Project gave it top raking for climate engagement in its supply chain and the group announced its ambition to move beyond deforestation free in its cocoa supply and become ‘forest positive’. Gilles was quick to emphasise that sustainability would remain key to Danone moving forward: “Antoine’s proven ability to successfully deliver a purpose-led growth strategy in a sustainable way fits well with our Mission and long-term goals.” “I believe Danone has significant potential to continue to shape and contribute to how people eat and drink globally.” Pascal Boll, an analyst with Stifel, said striking the right balance between business execution and sustainability will prove a ‘positive’ for Danone. Pointing to his experience at both Barry Callebaut and Unilever, Boll flagged de Saint-Affrique’s track-record of building and executing ‘a strategy focused on profitable growth [and] strong cash flow generation, while balancing a trustworthy sustainability strategy’. Highlighting the incoming CEO’s international experience as another bonus, Boll concluded: “[This] is the right way to go at Danone as well, after profitable growth has disappointed shareholders for many years and sustainability dominated the agenda under Emmanuel Faber.” Danone jettisons Faber as Chairman and CEO: Will his legacy of sustainable business survive?15-Mar-2021By Katy AskewDanone’s board of directors bowed to pressure from activist investors and announced that Emmanuel Faber – Chairman and former CEO – will leave the company with immediate effect. Putting the governance in ESG? Danone splits Chairman and CEO roles02-Mar-2021By Katy AskewDanone is a company well-known for its commitments to environmental and social sustainability. But the French dairy giant’s structure – combining the CEO and Chairman roles – has raised some concerns about the G in ESG. As the group comes under pressure... Recent success for Welsh food and drink as it targets international marketsPaid for and content provided by Welsh Government Mastering mouthfeel: The importance of mouthfeel in making brands thrivePaid for and in partnership with Tate & Lyle Rethinking eggs for a resilient food future a ‘matter of necessity’Paid for and content provided by CSM Group (CSM Ingredients & HIFOOD) French dairy and baby-food giant Danone has named outgoing Barry Callebaut boss Antoine de Saint-Affrique as its new CEO succeeding Emmanuel Faber who was ousted as CEO in March following investor disquiet over the Activia and Alpro brands owner’s performance Since then the company has been headed by joint interim leaders Véronique Penchienati-Bosetta and Shane Grant They will stay in role until de Saint-Affrique takes charge Danone said de Saint-Affrique’s appointment comes after a “rigorous selection process” and that he has also been put forward as a new member of the company’s board He joins from Swiss B2B chocolate maker and cocoa processor Barry Callebaut where he was appointed CEO in October 2015 de Saint-Affrique held a series of senior executive positions at Anglo-Dutch consumer goods giant Unilever Soon after he announced on 22 April that he was leaving Barry Callebaut, de Saint-Afrique was linked by the media and analysts with the Danone CEO role we have delivered on our promise to search and find swiftly the best person to lead Danone through the next phase of our evolution This marks a new chapter of leadership and a continuation of how we have been transitioning governance at the company for a few weeks already “We unanimously agree that Antoine de Saint-Affrique is a stand-out leader in the consumer goods world He has a distinguished track record of innovation and delivery he brings the right blend of strategic vision international consumer goods experience and operational execution skills to Danone “The board is confident that Antoine together with the rest of the leadership team will deliver sustainable value for shareholders Antoine’s proven ability to successfully deliver a purpose-led growth strategy in a sustainable way fits well with our mission and long-term goals “He will have all the room and resources a CEO can have to best assess and direct Danone’s strategy for the future.” De Saint-Affrique said: “I believe Danone has significant potential to continue to shape and contribute to how people eat and drink globally and I am looking forward to writing our next chapter of growth and further progressing Danone’s mission.” Recent newspaper reports suggested Danone had previously approached Max Koeune CEO of Canadian potato-products major McCain Foods and a former head of corporate development at Danone about the position but he had ruled himself out former head of professional products at L’Oreal Danone announced in early March, as investor disapproval of its performance grew, that CEO Faber would stand down after nearly seven years at the helm but stay on as its new non-executive chairman However, that move failed to placate some investors and, just a few weeks later, Danone said its board had decided Faber should stand down as the company’s chairman as well and leave the business entirely Just Food looks at the options open to Danone's new CEO Antoine de Saint-Affrique Given that he doesn’t take up his role until September Danone’s newly-announced CEO Antoine de Saint-Affrique will have plenty of time to reflect on what his priorities should be And there will be no shortage of advice from media commentators, analysts and investors for the man whose appointment was announced this morning (18 May) De Saint-Affrique will also presumably be reflecting that he has taken on the top job at a company with an investor base demanding an improvement in financial performance as well as being one that has already confirmed that its “Local First” strategy and its sustainability agenda are to be retained Alpro and Activia brands owner Danone had sought to establish itself as a good corporate citizen and intentions of doing business more sustainably with corporate responsibility central to strategy Danone’s shareholders backed Faber’s move to make the group an “entreprise à mission” Introduced in 2019 by the French government an “entreprise à mission” is defined as a company that has aligned societal and environmental goals with its purpose and set out those targets in its articles of association This status – and Danone’s strategy –  is set to continue under de Saint-Affrique the outgoing CEO of Swiss B2B chocolate firm Barry Callebaut but the market will want to ensure it is not at the expense of good financial performance which Danone’s sales fell 6.6% to EUR23.62bn (US$28.83bn) hit by pressure on its bottled-water business amid the pandemic but also by lower sales from the company’s “specialised nutrition” arm which suffered from lower infant-formula sales in China The company’s “recurring” operating income stood at EUR3.31bn by the lower sales from specialised nutrition the group’s most profitable business sales were down 3.3% year-on-year at EUR5.7bn While investors are not unhappy with Danone’s ambitions in regard to its ESG strategy at the same time they have sought a new plan to address what they perceive to be an undervalued share price and under-investment in brands and innovation It will be on getting this balance right de Saint-Affrique will be judged and he will likely have to be seen to be succeeding relatively quickly if he is to appease previously fractious shareholders and convince previously doubting analysts the new sheriff in town can turn things around What those analysts will be looking to see is to what extent de Saint-Affrique will be able to steer a more profitable course for Danone when the company has already said it will be maintaining its existing strategy In April – after Faber’s departure – a group of shareholders challenged Danone on its strategic vision at its forthcoming AGM and in particular its opinion on the Local First plan announced late last year which involved a reorganisation of the business around local hubs In what waas described as a “preliminary” response the Danone board reiterated support for the plan which it says “aims to accelerate growth and adapt the organisation of the company to the needs of consumers” Combined with a commitment to retaining its ‘mission’ to become ever more sustainable does this mean de Saint-Affrique has his hands tied even before he starts Analysts seem confident that is not the case and see the new CEO’s appointment as a positive development “[We] consider the appointment of Antoine de Saint-Affrique supportive for the case and share price as he has international experience and recognition headed the food division at Unilever between 2011-2015 and refined and executed at Barry Callebaut a strategy focused on profitable growth and strong cash flow generation while balancing a trustworthy sustainability strategy,” Stifel analyst Pascal Boll says will want to see de Saint-Affrique being allowed to impose himself on the business Cathal Kenny at Davy Research says: “This remains the key near-term debate given the fundamental nature of the restructuring – ultimately the new CEO will have to bring his own signature to the group strategy and the associated transformation plan “The market will expect a fresh perspective If this means adjusting the current re-org plan – so be it Executing on strategy and being a good corporate citizen should not be mutually exclusive.” That reorganisation plan, announced in October just prior to the announcement of plans to cut 2,000 jobs and achieve EUR1bn in cost savings sees a strategy committee “in charge of monitoring progress on portfolio review and execution of the growth and efficiency plan” This has already resulted in Danone reaping EUR1.6bn from the sale of its 9.8% stake in China Mengniu Dairy Danone had said the disposal of the stake – achieved this month – would “deliver portfolio optimisation and improve returns to shareholders through disciplined capital allocation” an analyst at New York-based investment bank and financial services firm Jefferies wrote in a research note after the disposal was announced: “We view the transaction positively reflecting as it does a further step in the tidying up of Danone’s associates Investor Artisan has previously suggested the Evian owner’s Asian Mizone waters unit could also be offloaded the post-Covid environment could see an improvement in this area that might not make such a disposal inevitable says: “[De Saint-Affrique] is probably fortunate in that the worst of the sales weakness is probably over for the group – water and nutrition should improve post-Covid as away-from-home channels are reopened and travel restarts in the Asia region given the importance of daigou – [a trading channel in which people outside China buy products for customers to be shipped back there] for its China nutrition business.” In terms of being given the ability to make significant changes speaking after the new CEO appointment was announced said: “This marks a new chapter of leadership and a continuation of how we He has a distinguished track- record of innovation and delivery international consumer goods experience and operational execution skills to Danone “Antoine’s proven ability to successfully deliver a purpose-led growth strategy in a sustainable way fits well with our mission and long-term goals He will have all the room and resources a CEO can have to best assess and direct Danone’s strategy for the future.” unhappy de Saint-Affrique is being put forward for a place on the company’s board the fact that previous CEO Faber also held the position of chairman of the board was one of the main complaints from agitated investors is typical for Danone but is debatable from a governance perspective Boll backs de Saint-Affrique’s appointment as CEO “We believe [this] is the right way to go at Danone after weak profitable growth has disappointed shareholders for many years and sustainability dominated the agenda under Emmanuel Faber “Danone is clearly lagging its peers and offers considerable re-rating potential under the new CEO With the appointment of Antoine de Saint-Affrique a successful repositioning towards profitable growth has become much more likely.” Cox at Kepler Cheuvreux adds: “De Saint-Affrique will have a pretty good idea of what he has to do – top of the list is restoring investor confidence in the overall Danone story He has to show that the group’s portfolio of dairy I would presume that you will see more divestments of slower-growing lower-margin businesses while it focuses resources on businesses with better prospects “I actually view the Local First plan as important – Danone’s costs are clearly top-heavier than its rivals and simplifying its management structure through a shift toward geographies is going to help and free up resources to improve profitability but also to reinvest in the business I would argue that de Saint-Affrique and [chairman] Schnepp have more than a fighting chance to improve the group.” Kenny suggests the new man’s long-term priority should be “achieving greater consistency of profitable growth and operational execution against a more complex operating environment – congruent with enhancing portfolio relevancy through a more accurate brand innovation agenda and portfolio refinement” But he warns: “On a multi-year view – decadal – it remains to be seen whether the current construct of the portfolio can achieve this.” Kenny says de Saint-Affrique will have to “take a long term lens and back himself” and expects that he will present his “vision/plan/priorities for Danone within three to six months from start date” View all newsletters from across the GlobalData Media network. Image: Bloomberg / Contributor (Getty Images)Unlike many other food executives Danone CEO Antoine de Saint-Affrique is optimistic about what the the skyrocketing demand for GLP-1 weight loss drugs could mean for the French yogurt company “We see ourselves as extremely complementary to GLP-1s.” Popular brands of these drugs include Ozempic Saint-Affrique rosy outlook is not shared by the food executives who have expressed uncertainty over the impact these drugs will have on their businesses food companies have been calling me,” Jørgensen told Bloomberg He did not disclose the name of the companies GLP-1s have already had a significant impact on the economy He told Bloomberg in October that in comparison to the general population users are buying less things Some analysts say that Danone and Chipotle may be on to something More specifically, the fast-casual salad chain Sweetgreen was the only restaurant respondents reported eating at more frequently after starting a GLP-1. Our free, fast, and fun briefing on the global economy, delivered every weekday morning. 8 hours ago • by Peter J. Meyers in Audio articles 21 March 2023 in CEO Dialogue Series • Podcast available in a frank and open discussion with IMD President Jean-François Manzoni explains his no-nonsense approach to problem-solving Since taking the helm at French food and nutrition company Danone in September 2021 clearly calling out the company’s underperformance compared to peers in the past while being confident that Danone is operating in the right categories and has what it takes to win “We took stock of where the company was; we were very open to the market and quite uncompromising on the good Speaking the truth is an integral part of Saint-Affrique’s leadership style His direct approach paid off: he says there was little pushback from the board and senior management “When you acknowledge that you have a problem including by turning it into an opportunity,” he said Founded in Barcelona in 1919 by Isaac Carasso a physician who started producing yogurt to heal young people Danone – which translates to “little Daniel” after Carasso’s son – has since then continued to pursue a clear mission to nurture good health through food Geopolitical tensions, persistent inflation, economic weakness, climate change, and sustainability. Business leaders are dealing with an unprecedented range of challenges simultaneously, making it harder than ever to know how to prioritize, navigate, and communicate effectively with teams. Scenario planning, listening and leading in new ways are part of the answer. In Issue IX of I by IMD we unpack new approaches to dealing with the polycrisis that's facing us where it has grown into a global player in four businesses – essential dairy and plant-based products and water – with annual sales of about $30 billion and more than 100,000 employees worldwide Saint-Affrique arrived at Danone during a turbulent period in the organization’s 100-year history The previous CEO Emmanuel Faber was ousted following activist pressure and for having failed to deliver on his pledge to revive sluggish annual sales growth So how did he go about reviving a culture in which performance and sustainability go hand in hand Saint-Affrique embarked on a listening tour with employees paying attention to what they were and weren’t telling him His second task was to restore peace and give clarity by building a compass for the future “When you have a company that has been through a very public governance crisis in the midst of probably the biggest restructuring in its history you don’t want to add to any confusion or complexity.” a four-pillar strategy designed to enable the company to reconnect with a sustainable and profitable growth model that includes restoring its competitiveness in core categories and geographies The strategy involves identifying the “winners” – those products that are outperforming the market – and assertively driving and renovating the core ranges while making sure that those categories that are performing in line with the market don’t slow down For the 25% of the business that is underperforming Danone will conduct a “root cause analysis” to see if there is a way of extracting more value Saint-Affrique also overhauled Danone’s economic model ditching targets for a certain percentage of sales growth and recurring operating margin by a certain date and cutting 2022’s target for recurring operating margin to its lowest level in two decades as he reinvested into the brands by ramping up advertising and promotion spending he vowed to increase margins over the long term building on a value creation algorithm that starts from organic sales growth While the short-term margin decline might have made uncomfortable reading for Danone’s investors The share price rose after he set out his strategy and is up slightly year-on-year “Don’t underestimate the knowledge that the market has of your company,” said Saint-Affrique “Analysts are extremely smart and well informed They look at market shares sometimes even more than your brand managers and mix is a playbook Saint-Affrique successfully applied in his previous role as CEO of Swiss cocoa and chocolate manufacturer Barry Callebaut where he more than doubled the company’s share price during his six-year tenure Reflecting on his approach to Danone’s transformation Saint-Affrique explained his strong belief in playing to win rather than playing not to lose The former requires a willingness to take a risk while also obsessively monitoring competitors and measuring market share is to combine measurement with a culture where people are being rewarded for experimenting and taking risk “If you blame people who have taken a risk and failed indeed nobody will take any risk,” he said “If you create a culture where it is legitimate to ask difficult questions where we work together at solving those questions you create an atmosphere where talking facts and measuring is just the ground on which you grow your people – and your company.”  Speaking up and being true to values are traits that Saint-Affrique expects from his top team “Bring me your problems with your recommendations for solutions and we’ll move from there Put the issues on the table and 80% right immediately is better than 100% late.”  He also expects his executives to be pragmatic and practical focused on growing people and relentless about learning “The day you think you’ve learned everything This quest for constant learning and renewal is something Saint-Affrique applies to himself When he took over as CEO of Barry Callebaut he told the board that he planned to stay for a maximum of seven years to avoid becoming stale and also to create room for budding talents to emerge and thrive within the organization “You want to stay long enough to go through two cycles – where each cycle usually lasts about three years – so you can correct what you need to correct and make sure that you transmit to your successor something that is proven and healthy,” he said “You don’t want to stay much more than that – especially if you’re successful – because you run the risk of killing your succession pipeline.”  Leaving after seven years also prevents a CEO from becoming irrelevant and lazy – either by becoming too full of themselves or by no longer challenging what they’ve built Leading a turnaround at an iconic French brand in today’s complex and challenging world means there is little chance that Saint-Affrique will get bored or comfortable any time soon He maintains himself at peak performance by recharging from multiple sources or talking to people who do very different jobs to him Rather than finding these multiple interests draining “I don’t ask myself the question of work-life balance because for me the two are totally entangled What I do outside my daily work nourishes my work; what I do at work nourishes my daily life,” he said “It is about preserving your freedom – your intellectual freedom and your emotional freedom – to be able to be at your best You play at your best when you are free – not when you are afraid.”  Antoine de Saint-Affrique was appointed CEO of the Danone group in May 2021 and he is a member of the Board of Directors since April 2022 he was Chief Executive Officer of Barry Callebaut from October 2015 to September 2021 Jean-François Manzoni is the President of IMD where he also serves as the Nestlé Professor and consulting activities are focused on leadership the development of high-performance organizations and corporate governance 10 December 2024 • by 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available CEO of the company which makes game-changing obesity drugs Ozempic and Wegovy explains how its culture and long-term view underpin its recent turnaround 30 April 2024 in CEO Dialogue Series • 9 min read The RWE CEO tells Jean-François Manzoni how he is reshaping the power company to drive the energy transition and why leaders need to always keep something in the tank to remain resilient... 26 March 2024 in CEO Dialogue Series • 9 min read • Podcast available tells IMD President Jean-François Manzoni how the Saudi company plans to triple assets to $250 billion in six years by expanding.. 27 February 2024 in CEO Dialogue Series • 9 min read • Podcast available Henkel CEO Carsten Knobel tells IMD President Jean-François Manzoni why he has remained laser focused on implementing its purposeful growth agenda and why the company decided to exit Russia 23 January 2024 in CEO Dialogue Series • 9 min read Tata Steel’s CEO & Managing Director TV Narendran tells IMD President 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Digital access for organisations. Includes exclusive features and content. See why over a million readers pay to read the Financial Times. News & Analysis on the Dairy Industry & Markets 08-Mar-2022 Last updated on 08-Mar-2022 at 10:49 GMT The plan is intended to enable Danone to reconnect with a sustainable profitable growth model, with delivery facilitated by a greater alignment between purpose and performance. However, the review also noted Danone’s historic under-performance compared to its markets, which can be attributed to a lack of focus on its core portfolio, late and sub-scale innovation efforts, inconsistent execution and low investments. In this context, and under the oversight of Danone’s board of directors, de Saint-Affrique and the executive committee have built a plan that aims to restore Danone’s performance, competitiveness and value creation for the long-term. The plan is built on four strategic pillars: Restoration of Danone’s competitiveness in core categories and geographies; Selective expansion of Danone’s presence, in terms of segments, channels and geographies; active seeding of future growth avenues; and active portfolio rotation. Danone said delivery of the plan will be facilitated by a greater alignment between purpose and performance, and putting the consumer and customer at the heart of everything Danone does. The company will restore passion for execution, a stronger discipline on capital allocation, and a greater sense of urgency in seizing opportunities and tackling issues. Based on this, Danone announces a new set of targets for the 2022-2024 period. It said 2022 will be a foundational year with price-led like-for-like sales growth between 3 and 5% and a recurring operating margin above 12%, assuming the reinvestment of 100% of Local First savings, a productivity higher than last year and a low to mid-teens level of input cost inflation (based on current macro-economic assumptions). For 2023-2024, the ambition of profitable growth means like-for-like sales growth between 3 and 5% with recurring operating income growing faster than like-for-like net sales. Another target is sustainable value creation and shareholder returns, with sequential ROIC improvement over the period supported by capital allocation discipline, portfolio rotation reaching around 10% of net sales, an annual capital expenditure envelope equivalent to a maximum of 4.5% of net sales, and further improvement in working capital. The final foes is disciplined financial policy, with a healthy balance sheet with targeted net debt to EBITDA ratio below 3x, and stable or growing yearly dividend. Gilles Schnepp, chairman of Danone, said, “Today is an important milestone for Danone. We have a new CEO, a new strategy, and a clear objective: accelerate organic growth to restore sustainable value creation. The “Renew Danone” plan has the unanimous support of the board and provides the company with a clear compass. “The strategy set out today by Antoine is yet another step in Danone’s evolution. Building on Danone’s strong roots, the plan puts in place the foundations to refocus our business on growth, while creating sustainable returns for our shareholders, and all our stakeholders.” CEO de Saint-Affrique said, “Renew Danone is all about creating the conditions for sustainable and competitive growth, and then delivering consistently in a way that creates sustainable value for all. “Danone is a one-of-a-kind company, with a culture anchored in a vision combining entrepreneurship and responsibility. It is a company with iconic local and global brands, playing in growing and on-trend categories. Danone has been leading the way in many fields: branding, innovation, people’s development and sustainability. But we have also been under-performing our markets for a while and have a lot we can improve on. “In the short term, we have to take better care of our core, with a renewed focus on great execution and strong innovations. We will face into our issues with greater speed and without compromise but will also make sure we better leverage our real strengths. “We first must win where we are. We also have the opportunity to expand our brands in places they should be. This, combined with active portfolio management, will bring us back in the race. In parallel, we will start seeding for the future with the ambition to outperform our markets then. “None of this can be achieved without the passion of the Danoners. Building from our value, we want to revive a culture where performance and sustainability go hand in hand, and where you see the best of being local and global coming together. We want Danone to be known for being the home of great talents and great brands, and a synonym for great innovation and great execution. “We are embarking on a renewal journey with a worthy destination: bringing Danone back to where it belongs.” Danone sales up in 202124-Feb-2022By Jim CornallDanone has published what it said is “a solid set of full-year 2021 results.” Danone North America continues research grants23-Dec-2021By Jim CornallFor the 10th year in a row, Danone North America will award two graduate students $25,000 each for conducting research to further study the role of the gut microbiome, yogurt and probiotics for human health. Danone to spend €43m to switch dairy factory to plant-based to meet demand18-Nov-2021By Jim CornallDanone is investing a total of €67m ($76m) in four of its French production sites. Ice cream for multi-sensorial experiences – new consumer trends Paid for and content provided by Cargill How the EU cheese category is driving innovation with quality schemes Paid for and content provided by European Union The quest for the perfect cheddar – solving challenges for efficiencies, texture and flavorPaid for and in partnership with IFF props: {"id":"reveal-ad","path":"/137873098/FM/default_reskin","selectAllTargets":true} skipWhenExists: false });CMSBrowserComponents.load({ el: '#vue-1746501595789-562' props: {"id":"div-gpt-ad-1746501595789-266","path":"/137873098/FM/default_lb","size":[[970,90],[728,90],[320,50],[300,50]],"sizeMapping":[{"viewport":[980,0],"size":[[970,90],[728,90]]},{"viewport":[750,0],"size":[728,90]},{"viewport":[320,0],"size":[[300,50],[320,50]]}],"refreshInterval":15,"scrollOffset":100} skipWhenExists: false });Danone Taps Barry Callebaut Head as New CEOThe announcement comes two months after the company ousted its former CEO amid mounting investor pressure DanoneDairy products maker Danone announced Monday that it has named current Barry Callebaut chief executive officer Antoine de Saint-Affrique to the same role, four weeks after the high-end chocolates and cocoa supplier announced an upcoming Sept. 1 CEO succession Danone will also look to add de Saint-Affrique as a new member of its board of directors at its annual shareholder meeting next April de Saint-Affrique has been CEO of Barry Callebaut since October 2015 he held various senior executive roles at global consumer goods provider Unilever "I am proud and honored to join and soon lead a company which has always been an inspiration for me," de Saint-Affrique said "I have tremendous admiration for Danone’s rich heritage and pioneering spirit in all fields: its strong and innovative portfolio of brands that have brought health through food to people around the world for so long; the dual social and economic project which has been at the heart of the company’s purpose for decades; and its strong and unique people culture which respects both diversity and inclusivity I believe Danone has significant potential to continue to shape and contribute to how people eat and drink globally writing our next chapter of growth and further progressing Danone’s Mission." "As a board we have delivered on our promise to search and find swiftly the best person to lead Danone through the next phase of our evolution have been transitioning governance at the company for a few weeks already," said Giles Schnepp "We unanimously agree that Antoine de Saint-Affrique is a standout leader in the consumer goods world and operational execution skills to Danone." Perrier destroyed two million bottles of its famous sparkling water suspected of being contaminated with "faecal" bacteria under government orders The announcement of the destruction was the latest blow for Swiss food giant Nestle whose French water subsidiary is under a criminal investigation for allegedly using illegal means to purify its mineral water Health authorities in the Occitanie region of southern France told Nestle Waters France to destroy all Perrier production from March 10 to 14 from one of its sources near Nimes the DGS health agency said in a document shared with AFP Nestle has said about two million bottles were destroyed "out of precaution" The company said that Perrier bottles in stores are safe regional authorities ordered Nestle Waters France to "immediately suspend" production at one of its sources near Nimes according to a copy of the order seen by AFP The order said that "faecal" contamination had been registered from March 10 Contrex and Hepar brands and French prosecutors in January opened an investigation in January into its purification methods The company has admitted that it disinfected water using UV lamps carbon filtering and other means that are not allowed for "natural" mineral waters Contrex and Hepar brands are in eastern France The DGS said that after new checks some water sources in eastern and southern France had been closed or re-classified as "water made drinkable through treatment" these catchments were treated fraudulently by the operator," the French health agency said The investigation has shaken the whole of France's water industry director general of French food company Danone told the company's annual shareholders meeting Thursday that its natural mineral water sources now face "extremely rigorous" monitoring Shareholders had raised questions about what steps were being taken at Danone Saint-Affrique said the company works closely with local farmers and industry to prevent contamination near its water sources Please [ Login ] to leave a comment About us | Advertise with us | Contact us Posted: 10 June 2015 | Victoria White | No comments yet Antoine de Saint-Affrique will take over the role of CEO of Barry Callebaut from Juergen Steinemann… The Board of Directors of Barry Callebaut has appointed Antoine de Saint-Affrique as new CEO Antoine de Saint-Affrique will take over the role from Juergen Steinemann who was elected Vice Chairman of the Board in December 2014 Antoine de Saint-Affrique is currently President of Unilever Foods and a Member of Unilever’s Group Executive Committee He is accountable for businesses with a combined turnover of EUR 12.4 billion across eight regions and three categories including Unilever’s Foodservice Division and the newly formed Baking Antoine de SaintAffrique has also served as an Independent Non-Executive Director at Essilor a world leader in ophthalmic optical products the Board has appointed a new CEO with an impressive track record in the food industry Antoine’s excellent knowledge of consumer markets his extensive international working experience and his remarkable success in building and integrating new businesses as well as rebalancing portfolios towards faster growing geographies and segments made him the right candidate for CEO after the completion of a thorough evaluation process The Board is excited to have Antoine de Saint-Affrique join our company We are convinced his entrepreneurial spirit strategic skills and great motivational talent will lead Barry Callebaut to the next level of growth.” “I am honoured to be given the opportunity to lead and further shape the world’s leading chocolate and cocoa company as its CEO Barry Callebaut offers a unique environment since it combines three qualities which rarely come together: a global leader but also a family company with longer-term purpose vision and a strong entrepreneurial spirit.” Andreas Jacobs continueds “I am very grateful to Juergen Steinemann for his passionate commitment to our company and his outstanding leadership since joining our company in 2009 Together with our Executive Committee and our dedicated staff Juergen has successfully led the further development and consistent implementation of our long-term strategy and transformed Barry Callebaut into the world’s leading chocolate and cocoa company including strong platforms in emerging markets and remains one of the fastest growing global food companies the company has been prepared for further growth by implementing processes and structures that are necessary to partner with global customers Juergen has led the design and implementation of a modern HR structure that enables us to attract develop and retain the talents we need to achieve further growth Our Board is very happy that we will be able to further benefit from Juergen’s wealth of experience in his capacity as Vice Chairman.” No comments yet All subscriptions include online membership giving you access to the journal and 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Terms & Conditions | Privacy Policy | Cookie Policy Website design and development by e-Motive Media Limited Necessary cookies are absolutely essential for the website to function properly This category only includes cookies that ensures basic functionalities and security features of the website These cookies do not store any personal information CookieDescriptioncookielawinfo-checkbox-advertising-targetingThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertising & Targeting".cookielawinfo-checkbox-analyticsThis cookie is set by GDPR Cookie Consent WordPress Plugin The cookie is used to remember the user consent for the cookies under the category "Analytics".cookielawinfo-checkbox-necessaryThis cookie is set by GDPR Cookie Consent plugin The cookie is used to store the user consent for the cookies in the category "Necessary".cookielawinfo-checkbox-performanceThis cookie is set by GDPR Cookie Consent WordPress Plugin The cookie is 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appointment at a board meeting last night said the decision followed “a rigorous selection process” led by the governance committee De Saint-Affrique will succeed the joint interim leadership of Véronique Penchienati-Bosetta and Shane Grant Danone, which owns brands such as Alpro, Actimel and Evian, has been searching for a new CEO since March following the ousting of Emmanuel Faber The business had come under pressure from activist investors after it failed to keep pace with rival large consumer groups as its products – such as bottled water baby formula and yoghurt – remained less in demand during the coronavirus crisis De Saint-Affrique said he was “proud and honoured” to join a company that had always been an inspiration to him “I have tremendous admiration for Danone’s rich heritage and pioneering spirit in all fields: its strong and innovative portfolio of brands that have brought health through food to people around the world for so long; the dual social and economic project which has been at the heart of the company’s purpose for decades; and its strong and unique people culture which respects both diversity and inclusivity,” he added “I believe Danone has significant potential to continue to shape and contribute to how people eat and drink globally writing our next chapter of growth and further progressing Danone’s mission.” who took up his post following the removal of Faber from the joint role of CEO and chairman said: “As a board we have delivered on our promise to search and find swiftly the best person to lead Danone through the next phase of our evolution “This marks a new chapter of leadership and a continuation of how we “We unanimously agree that Antoine de Saint-Affrique is a standout leader in the consumer goods world and operational execution skills to Danone.” Schnepp added de Saint-Affrique would have “all the room and resources a CEO can have to best assess and direct Danone’s strategy for the future” broker Barclays described Saint-Affrique’s appointment as a “good fit” Danone need a leader with charisma and a vision,” it added The Faber legacy runs deep and it will require a lot of work to recalibrate the company’s priorities and to unify the different factions.” Sign in to comment on this article Site powered by Webvision Cloud Learn moreExplore related questionsDiscover more about the topics that matter most Browse our suggested questions or ask your own to find out more Danone is committed to pursuing the "Innovated in China Made in China" journey to serve China's health strategy said the head of the global food and beverage player underlined the company's pledge to the "big health" concept and its ongoing contribution toward a healthier China during the three-day China Development Forum In a discussion that spanned the breadth of Danone's global mission and localized efforts de Saint-Affrique shared insights into how food is instrumental in promoting health and well-being aligning closely with China's health aspirations "Healthy consumption is rapidly gaining momentum among consumers as people's health awareness continues to expand and evolve health-related consumption now encompasses a wider spectrum including nutritional products and healthy foods," said de Saint-Affrique who believed such a trend has broadened the concept of "big health" He highlighted in his speech on March 24 that China's demographic shift toward an aging society presents both challenges and immense opportunities we are determined to address these challenges and seize these opportunities by integrating the concept of nutrition into the health agenda," he said Danone seeks to advocate for healthier life by offering a diverse range of delicious and nutritious food and beverage options through continuous innovation China proposes to take a comprehensive approach to address health-related challenges at the national strategic level and put people's health at its core A report by iiMedia Research projects health food sales in China to reach 423.7 billion yuan ($58.65 billion) by 2027 To cater to the unique needs of Chinese consumers while helping address the health challenges in China Danone took a significant step by establishing the Open Science Research Center in Shanghai in 2020 This state-of-the-art facility serves as an innovation hub with an open bringing together medical nutrition professionals A latest example of such local collaboration is the breast milk research carried out by Danone together with Jiangnan University in Jiangsu province an internationally renowned institution of food science The two sides joined hands to deep dive into the composition and structure of breast milk lipids of Chinese mothers while comparing that with Nuturis fat globules a novel lipid structure developed by Danone such local collaboration is essential to make progress in "big health" while unlocking the economic and social benefits Building on dynamic local research collaborations the center so far has made remarkable strides in advancing scientific knowledge and developing novel solutions and carried out six evidence-based studies related to breast milk The research breakthrough has also been transformed into nutrition innovations the company is also actively addressing the demographic changes by offering suitable and healthy products innovated in China as the Chinese population is aging and the incidence of chronic disease is on the rise its first medical nutrition product in the adult Foods for Special Medical Purposes category in China The company is seeking to offer a comprehensive range of nutrition solutions for the elders in the coming years echoing the country's latest pledge of "providing more products and services for senior citizens" at this year's top political sessions "By integrating the concept of nutrition into the health agenda we can improve the lives of millions of older Chinese citizens Let's work together to harness the power of nutrition to create a healthier and sustainable future for all," said de Saint-Affrique