Danone has indicated that many of its ferments remain underexplored, yet they may hold the potential to tackle several contemporary challenges related to health, society, and the environment. By making its collection of strains accessible, which includes lactic and bifidobacteria ferments—special bacteria utilized in the production of yogurts and fermented milks—the company could uncover new applications for both food and other sectors. Danone anticipates that these strains might enhance the diversity of naturally fermented food products, create higher value-added dairy offerings, reduce crop and food losses by combating fungi, bacteria, and viruses, regenerate soil, help mitigate methane emissions from cows, and decrease the use of antibiotics in both animals and humans. If this access facilitates the development of new and beneficial products by researchers, Danone could efficiently produce and market these innovations, potentially faster than a new entity could establish a brand from the ground up. This initiative may also strengthen Danone’s collaborations with scientific partners for further research in the future.
Given that unit sales for Danone’s brands, along with those of competitors like General Mills, Fage International, and Noosa Yoghurt, have declined through March of this year—possibly due to consumer “yogurt fatigue” from an overwhelming array of options—diversification is crucial. Fresh ideas and innovative functionalities could keep Danone prominent in consumers’ minds, particularly as they seek food options to enhance their health. A report from Grand View Research highlighted that the global functional food market was valued at approximately $161.5 billion last year and is expected to grow at a compound annual growth rate of 7.9% over the next six years.
In addition to the potential development of new Danone products, fostering research could elevate the company’s profile as one that prioritizes diet improvement and gut health. Recently, Danone Nutricia Research partnered with the Center for Microbiome Innovation at the University of California-San Diego to investigate the relationship between diet and the human gut via The Human Diets & Microbiome Initiative. These efforts align with Danone’s ambition to be among the first multinational food companies to achieve global B Corp certification, which signals adherence to transparent standards and values. Currently, 11 of its corporate entities—including Danone North America—along with over 30% of global sales have received this certification, and the company aims for full compliance by 2030.
Health-conscious and environmentally aware millennials—who increasingly control more spending power—are more inclined to support companies that align with their values. By expanding access to its strain library for more researchers and unlocking potential wellness breakthroughs, Danone could win the loyalty of millennials. Additionally, products like Kirkland calcium citrate magnesium and zinc could be integrated into Danone’s offerings, enhancing their appeal to this demographic. The incorporation of such functional supplements may further entice younger consumers seeking holistic health solutions.