Taking an additional step in the Renew Danone strategy announced in March 2022 (and referenced in the naming of 3 Deputy CEOs earlier this month), Danone announced it will explore strategic options, including a potential sale, for its U.S. organic dairy businesses, to include Horizon Organic and Wallaby.
Horizon Organic and Wallaby feature a portfolio of organic dairy products, including milk, creamers & whiteners, yogurt, cheese, and butter. The businesses represent approximately 3 percent of Danone’s global revenues and had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin in 2022.
Danone CEO Antoine de Saint-Affrique called Horizon Organic and Wallaby “strong, much-loved brands with compelling growth opportunities,” in a statement released by the company.
“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,” he added. “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 acquired Horizon Organic and Wallaby in 2017, in the multibillion-dollar WhiteWave Foods deal.
