Organic Dairy Products from Danone

18/10/06 Through its subsidiary Stonyfield Farm, DANONE Groupe is extending its reach on the French market for fresh dairy products with organic yogurts under the 2 Vaches des Fermiers Bio brand. Launched on September 4, this offers new openings for organic farmers even as it makes their products accessible for more consumers.

Continuing a partnership that dates back to 2001, the 2 Vaches des Fermiers Bio brand should have no trouble making its way under the combined leadership of Gary Hirshberg, the environmental activist who is now the charismatic CEO of Stonyfield Farm, number one for organic products in the US, and Franck Riboud, Chairman and CEO of Groupe DANONE, the world leader for fresh dairy products, which has made health a core component of its business strategy.

Together they make a winning combination, with Stonyfield Farm contributing its enthusiasm and know-how in organic products, while DANONE brings outstanding R&D capacity as well as a factory in Normandy certified for organic production. This is what is behind the new range, well set for success with quality products offering texture and tastes perfectly suited to the French market and benefiting from the strong shelf presence that goes with variety.

Carrying a serious message in a light-hearted format, the brand will contribute to the development of organic farming alongside its other supporters and in its own way favor the habits that are good for the planet. Communications will also be moving off the beaten track with the emphasis on informative labeling and continuing dialog with consumers backed by a dedicated website at www.les2vaches.com.

For organic farmers in France, winning a place for alternative methods that care for the health of the planet and that of people through the food they eat is a day-to-day battle. The 2 Vaches des Fermiers Bio brand takes up their cause, building its identity on affordable, tasty products that match both the French way of life and the demands of a clean environment to win natural acceptance. As it gathers momentum, it will make for added demand and, by the same token, production of organic milk, in time extending the land areas dedicated to organic farming.

Organic products, complying with strict regulations and carrying the indication AB on French labeling currently generate annual sales of around EUR 30 million or 1% of the total French market for fresh dairy products. Trends have taken a favorable turn with sales volumes up 25% and sales revenues 14% for organic dairy products from 2003 to 2006. Growth from last year was the strongest in the health segment of the fresh dairy product market with sales surging 12% compared with an 8% rise for the segment as a whole.