Danone has announced that it will explore strategic options, including a potential sale, for its organic dairy activity in the US, comprising the Horizon Organic and Wallaby businesses.
The global food company said that this announcement is an additional step in the portfolio review and asset rotation programme Danone announced in March 2022, as part of the ‘Renew Danone’ strategy.
Horizon Organic and Wallaby are strong brands in the US organic dairy category, with a portfolio of organic dairy products, including milk, creamers and whiteners, yoghurt, cheese, and butter.
They represent approximately 3% of Danone’s global revenues and the company said that they had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin in 2022.
Antoine de Saint-Affrique, chief executive officer, said: “Both Horizon Organic and Wallaby are strong, much-loved brands with compelling growth opportunities.
“That said, seen through the lens of our ‘Renew’ strategy which requires us to stay disciplined in how we allocate our resources, they fall outside our priority growth areas of focus.
“We are confident that exploring strategic options for these brands will enable them to get the focus and resources they need and therefore allow them to maximize their potential and unlock further growth.”
Danone
Earlier this month, Danone announced a global action plan to reduce absolute methane emissions from its fresh-milk supply chain by 30% by 2030.
Danone expects to remove 1.2 million tonnes of carbon dioxide equivalent (CO2e) of methane emissions by 2030.
The ambitious plan builds on the what the company said is the progress it has been making in recent years, already reducing its methane emissions by about 14% between 2018 to 2020.
Danone is one of the first food companies to set a methane reduction target and align with the ambition of the Global Methane Pledge launched at COP26.
The company will report on its methane emissions, as part of its extra financial disclosure.