Danone announced it will explore strategic options, including a potential sale, for its organic dairy activity in the U.S., comprised of the Horizon Organic and Wallaby businesses.
According to the announcement, this is an additional step in the portfolio review and asset rotation program the company announced in March 2022, as part of the Renew Danone strategy.
Horizon Organic and Wallaby are strong brands in the U.S. organic dairy category, with a portfolio of organic dairy products, including milk, creamers and whiteners, yogurt, cheese and butter. They represent approximately 3% of Danone’s global revenues and 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 in the announcement: “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.”
