Danone May Divest U.S. Organic Dairy Business, Including Horizon Organic, Wallaby

Jan. 27, 2023

Danone announced it will explore strategic options, including a potential sale, for its U.S. organic dairy businesses, to include Horizon Organic and Wallaby brands acquired in 2017 WhiteWave Foods deal.

Andy Hanacek

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.

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.