Danone will provide more freedom to local divisions

Источник: The DairyNews
Danone chose the "Local First" model, which will provide more autonomy to the local business units of the company and help the holding become more efficient and competitive. This was announced by Chairman of the Board of Danone Emmanuel Faber, presenting information about the business restructuring plan.

As previously reported by The DairyNews, Danone will dismiss 1.5-2 thousand employees during the implementation of the business restructuring strategy.

In addition, the company will reduce the number of SKUs by 20% and long-term innovative projects.

‘We were too innovative, promoting products that were not able to stay on the market for a long time. There was an abuse of resources, time, and money, which will now be directed to more detailed and disciplined segments,’ said Emmanuel Faber.

He stressed that by giving the right to choose to regional divisions, the company intends to be more flexible and reduce the decision-making period.

Drastic measures were taken after sales of the company fell by 9.3% in the third quarter of 2020.

‘A global pandemic has reversed some patterns of consumer behavior and accelerated others. The most favorable trends for us are the following: increased awareness of the consumer of the role of nutrition in health, the popularity of probiotics and enzymes, as well as the accelerated transition to plant-based alternatives and e - Commerce,’ Faber said.

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