PARIS: Consumer behaviour is going through a "profound transitional phase" that will have major implications for brands both during and after the downturn, according to Emmanuel Faber, co-chief operating officer of Danone, the food group.
At a recent event for analysts and investors, the company stated that its target for the second half of this year was to post like-for-like sales growth of 4%, a figure that rose to 5% when looking to the medium term.
It has come under increasing pressure from changing shopper behaviour in the recession, a trend that has applied to various sectors including bottled water, where the French firm has a presence with its Evian brand.
Faber argued "the world at large has gone, and is still going through, a profound transformational phase which will have a long-lasting impact on society and on consumer behavior."
"Our market share gains in 2009 are an evidence of the continued unparalleled ability of our brands to create value for our consumers, once adapted to the new macro-economic conditions."
The Paris-based organisation, which also makes Activa and Actimel, generates around 57% of its revenues from the dairy category, where its rivals include Nestlé and Unilever.
Its main initiatives in the last few months have included reducing prices, launching new products and intensifying its promotional activity in an effort to adapt to the demands of the financial crisis.
In the third quarter, volume sales improved by 7.1%, but value sales declined by 3%, while organic totals recorded a decline of 4.1%.
"We will continue to focus on delivering above category top-line growth which will be predominantly driven by volume growth," Faber said.
"The constituents of our top-line growth as well as our continued focus on cost competitiveness will remain the key drivers of our value creation."
Danone's co-chief operating officer also echoed the sentiments expressed by companies including Wal-Mart in stressing the growing importance of health and wellness to customers.
"We are, more than ever, convinced of the relevance or our mission to 'bring health through food to the largest number of people'," he said.
At a recent event for analysts and investors, the company stated that its target for the second half of this year was to post like-for-like sales growth of 4%, a figure that rose to 5% when looking to the medium term.
It has come under increasing pressure from changing shopper behaviour in the recession, a trend that has applied to various sectors including bottled water, where the French firm has a presence with its Evian brand.
Faber argued "the world at large has gone, and is still going through, a profound transformational phase which will have a long-lasting impact on society and on consumer behavior."
"Our market share gains in 2009 are an evidence of the continued unparalleled ability of our brands to create value for our consumers, once adapted to the new macro-economic conditions."
The Paris-based organisation, which also makes Activa and Actimel, generates around 57% of its revenues from the dairy category, where its rivals include Nestlé and Unilever.
Its main initiatives in the last few months have included reducing prices, launching new products and intensifying its promotional activity in an effort to adapt to the demands of the financial crisis.
In the third quarter, volume sales improved by 7.1%, but value sales declined by 3%, while organic totals recorded a decline of 4.1%.
"We will continue to focus on delivering above category top-line growth which will be predominantly driven by volume growth," Faber said.
"The constituents of our top-line growth as well as our continued focus on cost competitiveness will remain the key drivers of our value creation."
Danone's co-chief operating officer also echoed the sentiments expressed by companies including Wal-Mart in stressing the growing importance of health and wellness to customers.
"We are, more than ever, convinced of the relevance or our mission to 'bring health through food to the largest number of people'," he said.
Data sourced from Danone; additional content by Warc staff
