Danone has announced that it is considering the sale of its US organic dairy businesses, Horizon Organic and Wallaby, as part of its ongoing strategic portfolio review.
In a statement, the French dairy giant said it will “explore strategic options, including a potential sale” of the two businesses, which represent approximately 3% of Danone’s global revenues.
Horizon Organic produces milk and other dairy food products. Meanwhile, Wallaby is a manufacturer of organic ‘Aussie-inspired’ yogurts.
According to Danone, the businesses “had a dilutive impact” on its like-for-like sales growth and recurring operating margin in 2022.
CEO Antoine de Saint-Affrique said: “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.”
He continued: “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 maximise their potential and unlock further growth”.
© FoodBev Media Ltd 2022
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