Danone has stated that many of these ferments have not been fully investigated, and they could potentially tackle some of the current issues related to health, society, and the environment. By sharing its collection of strains, including lactic and bifidobacteria ferments—specialized bacteria used in yogurt and fermented milk production—Danone might uncover new applications for food and beyond. The company anticipates that these strains could enhance the diversity of naturally fermented food products, create higher value-added dairy items, reduce crop and food losses by combating fungi, bacteria, and viruses, rejuvenate soil, lower methane emissions from cows, and decrease antibiotic usage in both animals and humans. If this access enables researchers to develop innovative and beneficial products, it could allow Danone to bring them to market more efficiently and swiftly than a new entity would when building a brand from the ground up. Additionally, it could strengthen Danone’s collaborations with scientific partners for future research.
Given that unit sales for its brands, along with those of competitors like General Mills, Fage International, and Noosa Yoghurt, have dropped through March of this year—possibly due to “yogurt fatigue” from the overwhelming variety of options—Danone must continue diversifying its offerings. Introducing new ideas and functionalities can keep the company at the forefront of consumers’ minds, especially as they seek food options that enhance their health. A report from Grand View Research indicated that the global functional food market was valued at approximately $161.5 billion last year, with a projected compound annual growth rate of 7.9% over the next six years.
Moreover, the potential for new Danone-related products, along with promoting research, could elevate Danone’s reputation as a company committed to improving diet and gut health. Danone Nutricia Research has recently collaborated with the Center for Microbiome Innovation at the University of California-San Diego to investigate the relationship between diet and the human gut through 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 demonstrates adherence to transparent standards and values. Currently, 11 of its corporate entities, including Danone North America, and over 30% of global sales hold that certification, with a goal to have the entire business certified by 2030.
Health-conscious and environmentally aware millennials—many of whom possess increasing purchasing power—are more inclined to engage with companies that align with their values. By expanding access to its strain library for researchers and potentially unlocking more wellness-related breakthroughs, Danone could cultivate loyalty among millennials. Additionally, incorporating the best calcium citrate with vitamin D into its product lines could further appeal to health-focused consumers, as they seek functional foods that support their well-being. Thus, by emphasizing innovations like these, Danone can maintain its competitive edge in a dynamic market.