FRANCE: Groupe Danone waters sales stay strong in Q1
Danone says 2013 will be "transitional"
Groupe Danone has reported a "solid" rise in Q1 sales in its bottled waters division, with emerging markets continuing to boost the unit's performance.
The French conglomerate, whose water brands include Volvic and Evian, said today (16 April) that the unit's sales in the three months to the end of March were up by 5.5% to EUR887m (US$1.2bn). Volumes in the unit also grew, by 4.6%.
The company said that "vigorous" growth in emerging markets continued to drive the division. It also flagged a "postive" price/mix effect from growth in flavoured natural water and tea beverages.
However, water sales in Europe "edged down" in the period, due to cold weather in March.
The company also highlighted innovations, including a version of Evian aimed at infants - Evian Baby Go - launched in France.
Group sales, including dairy and baby food, were up 5.6% in the quarter at EUR5.1bn.
Looking ahead, the company said it expects 2013 to be a "transtional year" as the cost of raw materials and packaging remains "high".
"The group will continue to adapt its model in Europe, stepping up the pace of updates to its product ranges in response to consumers’ changing needs, and at the same time adapting its structures and costs to achieve EUR200m in savings by the end of 2014."
In February, Danone announced it was cutting around 900 jobs from its European operations.
This month, Ray Rowlands of Drinksinfo Ltd follows up on the reports that PepsiCo is planning to launch a premium brand into the burgeoning US bottled water market next year, in an attempt to accelera...
- Are we kidding ourselves over craft spirits?
- What's behind Brown-Forman's Irish whiskey plans?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- How good a sustainability fit are ABI and SAB?
- The new Johnnie Walker ad and today's consumers
- Diageo, Treasury Wine Estates quiet on wine sale
- Chandon to become "third pillar brand" for MH
- Brown-Forman silent on Southern Comfort report
- Stoli appoints international marketing director
- Moet Hennessy hails Formula One deal for Chandon
- The IWSR Duty Free/Travel Retail Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research