JDNews. In June, you have strengthened your partnership with the Singaporean government. How does he illustrate Danone’s strategy in the region?
Christian Stammkkoetter. Singapore has been a nerveless point for us for several years, and we are in line with the government, their way of thinking about health by going from a curative approach to a preventive and predictive logic, in which nutrition plays a central role. The local ecosystem, with its universities and hospitals, is very conducive to collaborations. This is why we have invested in it, especially with our digital life hub since 2018. Singapore also acts as a real lighthouse for the rest of Southeast Asia, in particular for Indonesia and Malaysia, and as a pole of attraction for local and international talents.
Indonesia is one of your five largest markets …
Yes, we have more than 12,000 employees, 24 factories and two emblematic brands: Aqua, bottled water founded more than fifty years ago by Mr. Tirmo Utomo (whose family is still today a shareholder), and SGM, launched by the Indonesian government and UNICEF to fight against malnutrition after the war. SGM is today a reference in infant nutrition. Our strategy is aligned with the national vision “Golden Indonesia 2045”, which aims in particular to reduce malnutrition.
A few years ago, almost 25 % of children suffered from growth retardation: thanks to accessible and adapted products, this figure fell by more than 5 points. We now focus our efforts on the fight against iron deficiency anemia, which affects a third of children. We have signed a partnership with the National Nutrition Agency to strengthen screening, awareness and education on this subject.
What about India?
It is a high potential market, but complex … India is a huge and growing market. Our presence is still modest, but it intensifies. We focus on two axes: infant nutrition, still underdeveloped, and adult nutrition with Protinex, a brand centered on our protein expertise, supporting healthy aging, but also offering products that meet the prevalence of diabetes and protein deficiencies. We therefore develop accessible products, supported by science, to respond.
“We believe that it is always possible to reconcile performance and impact”
How to combine public health and business challenges?
It is the whole heart of Danone’s mission: “Food health for the greatest number. »» In the region, nutritional challenges are immense. Our products and scientific expertise can really make a difference. We develop very sharp solutions, in particular to improve the absorption of iron, and we work hand in hand with the authorities. This creates new double -impact market segments, both societal and economic. It is the inherited spirit of Antoine Riboud in the 1970s and we think that it is always possible to reconcile performance and impact.
But basically, you stay a business, not an NGO!
Yes, but in 2006-2007, under the impetus of Franck Riboud, we made the choice to go from a general agrifood group to a health company through food. We focused on dairy products, water, infant, medical and vegetable nutrition … It is the heart of our strategy. The acquisition of Numico was decisive, in particular to anchor science in our model. Besides, yogurt itself is a product with a health vocation. Originally, it was sold in pharmacies! Even Evian began as therapeutic water. We therefore remain faithful to our history and to our DNA.
You direct a vast and heterogeneous area, which includes Africa and the Middle East … Are there convergences?
We bet a lot on local anchoring. In Indonesia, Malaysia, South Africa, West Africa, we have deeply local marks, even if we also offer Activia or Aptamil. We build common platforms to meet common issues, such as the fight against anemia: we locally adapt solutions, but with a common scientific base. This is also the case for our innovations intended for babies born by Cesarean section, a sharp increase in private hospitals in Asia: the idea is to be both relevant and generally coherent.
“The needs are universal, but food cultures will remain deeply local”
It is therefore no longer a simple “rest of the world” …
Exactly, we have also abandoned this term. More than 70 % of babies in the world are born each year in these regions. I often tell my European colleagues: “What if you were, the rest of the world tomorrow?” »» The growth here is two to three times higher than the world average. Danone therefore has every interest in being highly established.
Will food cultures inevitably be uniformly in the world, through science and health policies?
Nutritional needs are universal, but I am convinced that food crops will remain deeply local. In Asia, the Middle East, Africa … Each country has its strong culinary identity. I think it must be preserved. What will change is the addition of nutritional rich products, adapted to the specific needs of consumers – like our formulas for young children enriched with Ironbiotics, which integrate into their food and help to correct certain deficiencies. Or in India, for example, where current vegetarian diets can cause protein deficits. We will undoubtedly see a hybridization develop, but the heart of food will remain cultural.
You have just announced that you will soon join Givaudan as CEO: what is your feeling?
I spent 18 wonderful years at Danone. I arrived with the acquisition of Numico, and I often say that I had not chosen Danone at the start, but that I chose to stay there. It is a unique company, whose mission of bringing health through food to as many people as possible is more essential. I had the chance to rub shoulders with exceptional women and men who inspired me every day. I will therefore savor the coming months at Danone before joining the Givaudan teams, a company guided by its raison d’être, where creativity, culture centered on customer, unique identity and 250 years of inheritance in the art of creating perfumes and extraordinary flavors are deeply inspired by. So, even if I am sad to leave Danone at the end of the year, I am very enthusiastic about starting this new adventure with Givaudan.
