The president of Danone for EMEA, Pablo Perversi, has revealed that the multinational is considering implementing a new price increase to compensate for the rising costs of raw materials and energy. At the same time, he emphasized that companies have different levers to mitigate the impact of inflation, such as innovation, updating their offerings, and product reformulations.
"We have raised prices and we will try to raise them again," Perversi indicated during his speech at the 41st Aecoc Congress of Large Consumption, where he argued that these decisions must go in parallel with the evolution of consumer needs to maintain accessibility and continue growing. "Our products must be accessible to the consumer, because we are not going to give away products or make crazy promotions because that does not help generate value," he stressed.
Regarding private label, the executive pointed out that his focus is on the consumer, where he detects growth opportunities. However, he criticized that the distribution brand "copies and lowers the price," while Danone's roadmap is based on strengthening innovation, the added value of its references, and the accessibility of its catalog.
In this line, he maintained that the private label "does not create trends nor does it grow the market," claiming the contribution of manufacturer brands to the development of the sector. He highlighted that dairy products are currently the category that generates the most value in Spain, a dynamic he linked to innovation, investments, and differentiation.
On the presence of new products on the shelves, Perversi emphasized that collaboration with distributors drives growth for both Danone and its partners. As he explained, the operators with whom the company works closely not only help their brands increase their share but also strengthen their own position in the Spanish market.
The executive questioned commercial models that reduce the space allocated to brands and innovation, although he admitted that they respond to their own strategies with which they compete in the market. "When we collaborate well, we grow everywhere, maybe others are not doing so well because they do not give up that space," he noted.
Perversi has insisted that the Spanish market "is fragmented" and has small, very agile companies that, if they focus on "innovation and science," have a "very good future" ahead of them. "But if they settle for continuing to fall without finding a way to grow the future, it will not be so positive. It is important in Spain that old elements are challenged because 'Yes, it can be done,'" he emphasized.
"We have heard that in mature markets it is difficult to grow, but in Spain we have demonstrated that it is possible to grow again when you focus on the emerging needs of consumers and bet on science. We create value for our consumers and collaborate with an ecosystem that allows us to win together," he added.
Asked about the situation in France in light of the disturbances the country is experiencing and their effect on companies, after Carrefour admitted that it is reviewing its forecasts, Perversi avoided commenting on the results or prospects of Danone, as the company is waiting to present its accounts.
However, he indicated that the group is working alongside the French government and with organizations in the food distribution sector to ensure that consumers can continue to access their products. He recalled that, during the war in the Middle East, the company already modified logistics routes to guarantee supply on the shelves, as part of its commitment to supply wherever consumers are located.
INNOVATION AND SCIENCE, LEVERS OF GROWTH
In this way, the president of Danone for EMEA, Pablo Perversi, has emphasized that the transformation of consumption habits and the greater interest in health open new opportunities for brands. "Being healthy now sells," he pointed out, highlighting that personal care has been integrated into consumers' identity and social reality.
In this scenario, he argued that companies have the responsibility to respond to these emerging demands and considered that Danone is in a "privileged" position to continue growing.
Perversi has detailed that the multinational has renewed 50% of the products on the shelf through innovation, has entered new categories, and has bet on technology, in addition to transforming numerous ways of working. According to what he has explained, these changes have allowed Danone to move from losing volume to recovering it, in a process that has also involved a profound cultural evolution.
Among the lessons learned, the executive has highlighted that "growth starts long before the market exists" and has specified that 40% of current growth comes from categories that a few years ago were emerging. He has pointed out that the kefir market has multiplied by five and that Greek yogurt has ceased to be a niche to become the leading segment in penetration.
The president of Danone for EMEA has recalled that five years ago dairy products were in decline, while now the company is advancing with sustainable growth. In this journey, he has claimed the role of science as a driver for designing new solutions. "Science discovers possibilities and innovation turns them into growth," he has stated.
Regarding GLP-1 treatments, such as Ozempic, Perversi has emphasized the importance of protein in protecting muscle mass and has considered that Danone is "well positioned" to respond to this need, which, he has indicated, is part of the recommendations from nutritionists.
Likewise, he has pointed out that these treatments have had an additional effect by promoting changes in eating habits and a greater concern for maintaining a balanced diet, in which protein is a relevant element, although not the only one.
In this line, Perversi has argued that brands must "create value" and not limit themselves to competing, in the face of the temptation to remain in what is known without looking to the future. In his view, addressing the needs of all consumers is a responsibility that also translates into growth for the entire sector.