Danone, the French consumer goods giant, has announced it is exploring strategic options, including a potential sale, for its organic dairy activity in the US, comprising the Horizon Organic and Wallaby businesses.
“This announcement is an additional step in the portfolio review and asset rotation program the company announced in March 2022, as part of the Renew Danone strategy”, Danone said in a statement.
While touting Horizon Organic and Wallaby as “strong, much-loved brands with compelling growth opportunities”, the company noted they had caused a “dilutive impact” on like-for-like sales growth and recurring operating margin in 2022.
Danone CEO Antoine de Saint-Affrique said the brands were “outside our priority growth areas of focus”.
“We are confident that exploring strategic options for these brands will enable them to get the focus and resources they need and therefore allow them to maximize their potential and unlock further growth”, he added.