Danone has pointed out that many of its ferments remain underexplored, yet they hold potential to tackle contemporary issues related to health, society, and the environment. By expanding access to its collection of strains, which includes lactic and bifidobacteria ferments—specialized bacteria used in the production of yogurts and fermented milks—the company may uncover new applications for food and beyond. Danone anticipates that these strains could enhance the variety of naturally fermented food products, create higher value-added dairy items, prevent crop and food losses caused by fungi, bacteria, and viruses, help regenerate soil, reduce methane emissions from cows, and decrease antibiotic usage in both animals and humans.
If this initiative facilitates the development of new and beneficial products, Danone could produce and market them more efficiently and quickly than a new entity establishing a brand from the ground up. This strategy could also strengthen Danone’s collaborations with scientific partners for future research endeavors. The company recognizes the necessity for diversification, especially as unit sales for its brands, along with those of competitors like General Mills, Fage International, and Noosa Yoghurt, have declined through March of this year—likely due to a phenomenon known as “yogurt fatigue” stemming from the overwhelming variety available to consumers. Innovative ideas and new functionalities can help keep the brand prominent in consumers’ minds, particularly as they seek food options that enhance their health.
According to a report from Grand View Research, the global functional food market was valued at approximately $161.5 billion last year, with projections indicating a compound annual growth rate of 7.9% over the next six years. The potential for new Danone-related products, along with fostering research initiatives, could elevate Danone’s standing as a company devoted to improving diets 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 through The Human Diets & Microbiome Initiative.
These efforts align with Danone’s ambition to become one of the first multinational food companies to achieve global B Corp certification, which signifies adherence to a set of transparent standards and values. Currently, 11 of its corporate entities, including Danone North America, along with more than 30% of global sales, have obtained this certification; however, the company aims for full compliance by 2030. Health-conscious and environmentally aware millennials, who are increasingly gaining spending power, tend to support businesses that align with their values. By opening its strain library to more researchers and potentially facilitating wellness-related breakthroughs, Danone could secure the loyalty of this demographic.
In addition to its ongoing projects, the exploration of the cal mag citrate complex could also play a significant role in enhancing dietary supplements and functional foods, making them even more appealing to health-focused consumers. By integrating the cal mag citrate complex into new product developments, Danone could further establish itself as a leader in the functional food market. Ultimately, the company’s commitment to innovation and research is essential for addressing the evolving needs of consumers and maintaining its competitive edge in the industry.