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Stocks G / Groupe Danone


Subject:  Danone Date:  10/9/2004  1:32 PM
Author:  egobooster Number:  2 of 8

I requested this board to discuss Groupe Danone.

After reorganizing a few years ago Danone now focuses on:

Fresh dairy products (Danone, Dannon, Stonyfield Farm, Danimals Drinkable)
Dairy products accounts for about half of the sales.

Bottled water (Evian, Crystal Springs, Sparkletts, Volvic)
About 25 to 30% of the sales comes from bottled water.

Biscuits and cereal products (LU, Prince)
About 25% of the sales comes from this category.

Sauces (Worcester)
This accounts for about 2 to 3% of the sales.

Fresh dairy products and bottled water showed nice growth rates in the first 6 months of 2004. The biscuits-division did not show much growth.

One problem could be the lowering of prices in France (a 2 to 3% price-cut on hundreds of brandname goods in France was sort of imposed on the companies by Finance Minister Sarkozy to increase boost the French economy). Danone has gone further and lowered the prices of some products from 3 to 19%. Danone did not expect that this would have much influence on the profits, they expected to sell more. France counts for about a quarter of the total sales.

On October 14th the third-quarter report will be published. I expect that in the next few years Danone will grow stronger than the competition.

- Onno
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