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Danone Plans to Regain Competitive Edge in Europe

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Danone Plans to Regain Competitive Edge in Europe

Danone Plans to Regain Competitive Edge in Europe
December 14
10:13 2012

Danone is preparing a cost reduction and adaptation plan to win back its competitive edge in Europe, where the downturn in the economy and consumer trends have led to a significant decline in the French group’s sales in the region. The plan will be deployed over two years and is aimed at adjusting costs to the new market environment and generating savings of around Eur200 million in Europe. It will seek to reduce general and administrative costs for the group and its European subsidiaries, and adapt management organisation inEurope, which was devised for a growth environment.

Combined with ongoing productivity programs, the plan is designed to free up resources to make Danone products and brands more competitive. At organisational level, the plan will address management structures and support functions. It will be based on voluntary measures and internal mobility will be the priority. This project will be submitted to Works Councils by March 2013.

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