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Overview of activities, risk factors
2.5 Other elements related to Danone's activity and organization
DANONE
REGISTRATION DOCUMENT 2015
20
Reliability: committing to nutritional quality
and resource preservation
Danone applies the recommendations of theWorldHealthOrganization
(WHO). Controlling the nutritional composition of its products is a
key component of its nutrition strategy, with a dual objective:
•
strive to reach nutritional targets defined by nutrient, product
category and consumer group. These targets were redefined
in 2015 for all three Divisions: Fresh Dairy Products, Early Life
Nutrition and Waters (Aquadrinks);
•
develop products that constitute an alternative, with nutritional
and taste qualities exceeding those of other market products or
categories that might be chosen in a given consumption situation.
Danone prepares and implements action plans to steadily improve its
products in order to maintain the sensory qualities of the products
and ensure continued consumer preference.
This approach is also conducted in accordance with a strict food
safety policy.
Cultures: embracing local eating and drinking
habits
Danone puts the consumer at the heart of its development proj-
ects. To that end, Danone relies on its Sensory & Behavior Science
Department within the Research and Development Department.
Danone firmly believes that consumers and their specific needsmust
be taken into account early in product development, including the
identification of research areas. Danone's Research and Development
seeks to understand the human parameters of food consumption
and identify consumer expectations in terms of taste, usage and
experience in everyday life and targeted benefits.
As mentioned above, understanding local challenges surrounding
nutrition and food as well as major challenges pertaining to public
health and involving food are also key to Danone's strategy. This en-
ables Danone to develop products that are relevant andmore closely
adapted to local market conditions. To that end, Danone drafted a
“Nutriplanet” map of nutrition and public health that identifies food
deficiencies and excesses in specific countries and allows Danone
to adapt its product recipes accordingly. Today, Nutriplanet has
been completed in over 50 countries and is a resource for research
published in scientific journals.
This expertise also leads Danone to study dietary practices and
trends, and the role of various food groups in the local cultures
through a sociological approach.
Well-being: promoting Danone's product
categories
Through its four Divisions, Danone focuses on product categories
that support primarily health and well-being:
•
fermented fresh dairy products, because daily consumption of
yogurt is consistent with the recommendations for a balanced
diet, as evidenced by the official food pyramids of many countries;
•
water, an essential beverage;
•
early life nutrition, because the diet in the first 1,000 days of life
is critical for good health;
•
medical nutrition, because targeted nutrition works together
with medical treatment.
Danone is developing a new research area that involves measuring
the impact of its products on consumer diets, an area that, among
other factors, includes: the creation of quantitative measurement
tools; the definition of diet quality indices; the development of
methods to classify consumers based on their dietary practices;
the quantified simulation of the impact of a change in a given food
on the overall quality of the diet.
Plants and equipment
Danone's general policy is to own its production facilities. Danone
has many, widely-dispersed production facilities, except in the
Early Life Nutrition and Medical Nutrition Divisions, whose sites
are more concentrated.
Danone has production facilities around the world in its principal
markets. As of December 31, 2015, Danone had 194 production sites
(see section 5.2
Information concerning Danone's social, societal and
environmental performance in compliance with the Grenelle II law
).
Lastly, Danone rents some facilities, notably offices and warehouses
(see section 3.4
Balance sheet and financial security review
).
The production sites are inspected regularly to assess possibilities
for improving quality, environmental protection, safety, and produc-
tivity. On the basis of these reviews, management establishes plans
for the expansion, specialization, upgrading, and modernization (or
closing) of specific sites.