Danone mulls sale of US organic dairy brands – Horizon Organic and Wallaby
Danone said that it will consider a possible sale among other strategic options for its organic dairy activity in the US, which includes the Horizon Organic and Wallaby businesses.
The French food company said that the move is a further step in the review of its portfolio and asset rotation program, which it revealed last March under the Renew Danone strategy.
According to Danone, Wallaby and Horizon Organic are strong brands in the American organic dairy category. Their portfolio of organic dairy products features milk, yogurt, creamers and whiteners, butter, and cheese.
Together, the Wallaby and Horizon Organic dairy brands made up nearly 3% of the global revenues of Danone. The French dairy company said that last year, the two brands had a dilutive impact on its like-for-like sales growth and recurring operating margin.
Antoine de Saint-Affrique — Danone CEO 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.”
In October 2022 Danone said that it launched a process of transferring the effective control of its essential dairy and plant-based business (EDP business) in Russia.