Danone, which owns brands such as Actimel, Alpro and Activia, has added to its portfolio with the acquisition of The Akkermansia Company (TAC).
The global company, which is headquartered in Belgium, specialises in gut health. In 2004, scientists at TAC discovered and developed a biotic strain, Akkermansia muciniphila MucT. They clinically demonstrated its power to reinforce the gut barrier, reduce inflammation, and counteract metabolic disorders such as obesity, diabetes, and cardiovascular disease.
Expanding deeper into gut health is a key part of Danone’s ‘Renew’ strategy, as it doubles down on science and innovation.
The Renew strategy was announced in 2022 by the then new CEO Antoine de Saint-Affrique. The plan came after a review of the business, with the objective to restore growth and drive value creation.
Whilst the review found the business to have a strong portfolio of brands, it also highlighted Danone’s historic underperformance compared to its markets, which can be attributed to a lack of focus on its core portfolio, late and sub-scale innovation efforts, inconsistent execution and low investments.
Under the oversight of Danone’s Board of Directors, Antoine de Saint-Affrique and the executive committee created a plan aiming to restore Danone’s performance, competitiveness and value creation for the long-term.
The plan comprises four pillars:
- Restoration of Danone’s competitiveness in core categories and geographies
- Selective expansion of Danone’s presence, in terms of segments, channels and geographies
- Active seeding of future growth avenues
- Active portfolio rotation
The move by Danone also comes as consumer interest in healthy products continues to rise.
Whilst recent UK till sales show cautionary behaviour from consumers amidst inflation, there has been a shift in healthier eating habits. The largest category shifts were big pot yogurts (+29%) followed by frozen fruit (+21%); vitamins (+15%) and healthier snacks such as rice cakes (+18%) and sushi (+15%).
Meanwhile, other recent research has also shown European consumers to be splashing out on indulgent foods that ‘nourish both mind and body’ despite cost-of-living pressures.
This latest acquisition follows Danone’s purchase of a majority stake in plant-based, organic nutrition company Kate Farms.