7,968 $m
Danone leads its category, positioning itself as a brand synonymous with healthy lifestyles. Concentrating its portfolio and growth squarely in the yogurt segment, the brand listens to the needs and wants of consumers in different markets, tailoring its product innovations to appeal to local trends around the world and earning a best-selling product in each. Competitors have followed Danone’s example, positioning various products to appeal to health-conscious consumers. Store brands have also grown in the yogurt space in the last year and consumer interest in healthy and environmentally sustainable options has opened the door to new forms of competition, with some producers of dairy alternatives doubling revenue in the last year. Struggling to differentiate, Danone saw a 10 percent decrease in sales in Europe. Working to create strategic opportunities, Danone is teaming up with Starbucks to exclusively distribute Evolution Fresh, Inspired by Dannon, in Starbucks’ retail locations and in grocery stores, offering branded ready-to-eat parfait Greek yogurt. The rollout is set to take place in the US throughout 2014 and 2015 and then expand globally. Both Starbucks and Danone also announced plans to leverage this opportunity to create other products in markets around the world. With Starbucks’ significant customer base and the popularity of its Evolution Fresh line, this multi-year agreement has the potential to create significant new market opportunities for Danone in the future.