Danone prepares a plan to generate savings and regain its competitive edge in Europe
To address a lasting downturn in the European economy and consumer trends that have led to a significant decline in its sales in the region, Danone is preparing a cost reduction and adaptation plan to win back its competitive edge.
The plan will be deployed over two years and is aimed at adjusting costs to this new context and generating savings of around €200 million in Europe. It will seek to reduce general and administrative costs for the group and its European subsidiaries, and adapt management organization in Europe, which was designed for a growth environment.
Combined with ongoing productivity programs, this plan will free up resources to make Danone products and brands more competitive.
At organizational level, the plan will address management structures and support functions. It will be based on voluntary measures and internal mobility will be the priority. This project will be submitted to Works Councils by March 2013.
Danone is one of the fastest-growing food companies in the world. Its mission is to bring health through food to as many people as possible.
The group, whose products are sold on five continents, has more than 180 production plants and around 100,000 employees. In 2011, Danone generated sales of €19 billion, of which more than half were in emerging markets. The group holds top positions in healthy food through four businesses: Fresh Dairy Products, Baby Nutrition, Bottled Water, and Medical Nutrition. Listed on Euronext Paris, Danone is a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes, ASPI Eurozone and the Ethibel Sustainability Index.
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