In Russia, Danone has added a new variant to its Actimel range featuring cloudberries – amber-coloured fruit grown in Siberian swamps and bogs.
It has also added a thicker, peasant-style variant to its Activia range.
The two products are credited with returning the two flagship brands to growth. According to Bernard Ducros, head of the business in Danone’s fourth-largest market, profitability has also improved since the French company shifted to more innovative products.
“We reduced our exposure to low value-added products, such as ultra-pasteurised milk,” said Ducros. “That is a low-margin segment for us, and we don’t want to buy volumes there, via promotions and price reductions.”
In 2015, Danone’s Russian unit introduced set yogurts, a type of thick yogurt where fermentation occurs inside the tub. Danone had a 21.8% share in the country’s dairy market, which is worth about €7.1 billion a year.
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