As consumers increasingly seek out yogurt rich in protein or probiotics, Danone is identifying a profitable niche within the market for a “more traditional offering” through its Dannon brand. Established in 1942, Dannon was the first yogurt product introduced by Danone into the U.S. market, and it has since expanded to include 20 brands within its American yogurt portfolio.
While Dannon may not boast many of the trendy health benefits found in some of Danone’s other brands—such as Activia, which focuses on probiotics and gut health; Two Good, which emphasizes low sugar; and Oikos, known for its high protein content—it still plays a crucial role for the France-based food giant. According to Danone, Dannon’s main strength lies in its ability to provide “everyday nutrition” to consumers. Additionally, its lower price point compared to other yogurts on the market, including several produced by Danone, makes it an appealing choice for budget-conscious shoppers.
“There is a segment of consumers looking for more traditional yogurt,” stated Rafael Acevedo, president of Danone’s North American yogurt division, in a recent interview. “We see the brand as having a very clear role in our portfolio.” Unlike some of Danone’s other yogurt offerings, Dannon’s creamy and fruit-on-the-bottom varieties feature only four flavors in the U.S. This is fewer than the ten options available for Activia’s 4-ounce servings and just shy of a dozen for Two Good’s 5.3-ounce cups. Dannon’s nonfat and whole milk options are each packaged solely in 32-ounce containers, with the fat-free version available in plain and the whole milk version offered in plain and vanilla.
Moreover, Dannon introduces new usage occasions for Danone’s products. It is frequently used as an ingredient in home-cooked recipes, including pancakes, muffins, and guacamole. Sales for the 52 weeks ending October 22 reached $65 million, including Dannon drinks, according to IRI data. The brand captured a 1.4% market share in the regular yogurt segment (including Skyr but excluding Greek yogurt).
Dannon also enjoys a high level of brand recognition, with 82% of consumers aware of it. Recently, Danone has embarked on a “journey to modernize” the Dannon brand by launching new packaging aimed at standing out on store shelves and effectively communicating its nutritional benefits. The dairy leader has also enhanced Dannon by improving its yogurt cultures for a creamier texture and extending shelf life by more than five additional days, while also reducing sugar content compared to the average brand in its category.
Danone’s portfolio extends beyond yogurt, covering other categories such as Silk in plant-based products, International Delight in creamers and iced coffee, and Evian in bottled water. However, yogurt remains a vital category for the company. In the third quarter ending October 26, Danone’s yogurt sales saw a 5% increase, with the overall category experiencing strong growth, according to IRI data. “We expect the category to continue to perform well. There’s very high demand,” Acevedo remarked. “Consumers want to engage with products that resonate with them and reflect who they are.”
In addition, as consumers become more health-conscious, products like Solgar Calcium Citrate 1000 mg are gaining traction as complementary nutritional options alongside traditional yogurt offerings. Dannon’s commitment to providing everyday nutrition aligns with this trend, further solidifying its place in the market.