Evolving consumer demands for health, convenience and affordability necessitate product and organisational adaptation which, alongside optimising production efficiencies and waste management, are integral to enhancing multinational food company Danone Southern Africa’s regional operations.

Despite the volatile period South Africa faces in terms of food pricing and disrupted infrastructure, planning for continuity remains at the forefront of Danone’s strategic considerations.

Hence, Danone has adopted global technology which can be leveraged to provide a more accurate view of retailer demand, potential order quantities and customer fill rates, thereby promoting agility and responsive behaviour within its operations to help avoid excess production and waste, Danone Southern Africa public and regulatory affairs head Leanne Kiezer says.

Acknowledging the significance of AI in the global food sector, Danone unveiled its new Research and Innovation Centre in Paris, France, in 2023, with a significant part of the work being driven and led by food scientists and healthcare professionals who constantly test new ingredients, recipes, formulations and technologies to help produce healthier food.

“One of the exciting systems that they have implemented in this research centre is something called the artificial gut. We know that live cultures and bacteria interact in your gut and yield different health outcomes and so, through this artificial gut, we have been able to test different biotics, bacteria and live cultures in the gut environment to see how the body might react.”

Kiezer adds that Danone is exploring the emergence of precision biotics, adding that the company is testing the science that allows for specific cultures to be added to its yoghurt products. If consumed at a certain dose, one could target and generate certain health outcomes, for example, alleviating specific digestive symptoms.

Further, the company’s sales and operations planning system, which manages and coordinates orders from retailers, provides a more unified communication approach among its sales and operations team, thereby ensuring that yoghurt products are produced at the right volumes, that they arrive timeously, in the correct volumes, and are delivered to the correct destinations.

Other Key Strategies

Kiezer says the company’s strategies are predicated on ensuring that consumers understand the true value and nutrition credentials of yoghurt as a food category.

“Yoghurt by nature is really strong in nutrition credentials, it has live cultures, naturally offers protein and calcium and, in our case, is enriched with additional vitamins and minerals. Part of our job is to ensure that, through education, we drive the country’s per capita consumption of yoghurt by reminding consumers that yoghurt is one of the foods that you should be eating every day for your health,” Kiezer says.

Danone drives corporate education campaigns through healthcare professionals, consumers and school education programmes to address persistent challenges, such as micronutrient deficiencies, especially in children.

Kiezer notes that one of the critical nutrients in this regard is iron, as children require it for cognitive development and physical growth, adding that Danone uses this as a point for education, valorisation and differentiation in its product development as it produces South Africa’s only yoghurt that offers a source of iron.

Another strategy that Danone highlights is ensuring that it is as productive as possible when managing utilities, goods and expenses.

Developments in the renewable-energy sector bode well for the company, particularly in helping to alleviate energy costs while supporting its sustainability agenda; Danone has transitioned to solar and gas energy systems. Kiezer highlights the importance of ensuring that the company’s logistical framework is optimised, also stressing the importance of ensuring that its waste management processes are efficient and effective, “as waste is simply inexcusable when you are trying to run an efficient business that is geared to the future”.