Danone plans price increases and focuses on innovation to counter private labels

Danone is shifting its strategy to drive growth through innovation and health-focused products, such as Alpro and kefir, while reducing its reliance on the basic yogurt category. Pablo Perversi, Danone's president for Europe, Middle East, and Africa (EMEA), announced at the Aecoc Consumer Congress in Seville that the company intends to implement price increases in 2025 and potentially through 2027 to manage rising costs.

Perversi noted that the company is facing significant competition from private labels, which currently hold approximately 70% of the natural yogurt market. He characterized the competition as a practice of copying products and lowering prices without driving new consumer trends. To differentiate itself, Danone is focusing on emerging categories and consumer health trends, including digestive health and microbiota.

According to Perversi, Danone has already transitioned from losing volume to gaining it, with 40% of current growth coming from emerging categories. The company has also updated 50% of its product lineup over the last four years to adapt to changing consumer habits and social shifts.