Danone's Sustainability Mission for the Paris 2024 Olympic Games
The company is committed to reducing its environmental footprint, in alignment with the Paris Olympics 2024 goals of halving its carbon dioxide emissions compared to previous editions of the event.
What to Expect
Danone isn't just throwing money at the Games, they're providing millions of healthy meals and using the platform to promote sustainability, healthy living, and community engagement.
While Danone wants to showcase their eco-friendly efforts, critics claim they're "greenwashing" - pretending to be sustainable while facing accusations of water overuse and misleading recycling claims.
Danone is supporting both athletes and their communities, investing in local development projects and promoting healthy living for everyone, not just Olympic champions.
Danone, a powerhouse in the world of food and beverages, has strategically taken center stage as a key sponsor of the Paris 2024 Olympic Games. This isn't your typical sponsorship; it's a dynamic involvement that reaches beyond the ordinary, championing causes like sustainability, health, and community engagement.
Beyond just cutting a check (the exact amount shrouded in mystery), this French food giant is set to provide over two million fresh and plant-based dairy products across its diverse brands – think Danone, Activia, Actimel, Alpro, Hipro, and more – to fuel the athletes at the Games. With its colossal sales reaching €24.3 billion in 2021, Danone is also ensuring that its signature products, especially the specialized nutrition lines, are readily available for spectators to savor.
But it doesn't stop there – the various brands under the Danone umbrella will be a delightful part of the 13 million meals served at the Paris 2024 Games venues. From volunteers to spectators, guests, and the media, everyone gets a taste.
This is more than just sponsorship; it's a strategic move by Danone to seize the international spotlight of the Olympic Games. The aim? To align the brand with cultural values that echo on a global scale and to bask in the media glow of the event, shining a spotlight on their brand and flagship products. It's not just about fueling champions; it's about making sure everyone, from athletes to spectators, gets a taste of Danone's winning spirit in this carefully planned product placement strategy.
How it all began
Founded in Barcelona in 1919, Danone has evolved from a small yogurt manufacturer to a multinational corporation with a diverse portfolio of products. Since its inception, the company has been committed to providing health through food. In 1919, when founder Isaac Carasso began making yogurt to help children with intestinal infections, using cultures from the Pasteur Institute, the foundation of the company was laid "bringing health through food to as many people as possible."
The company's image is associated with a commitment to promoting health and wellness and aligns perfectly with the spirit of the Olympic Games. In the context of the Paris 2024 Olympic Games, Danone has launched a comprehensive program encompassing sustainable practices, healthy living, and community empowerment.
Nutrition, sustainability and lasting social impact
One of the key pillars of Danone's initiative is to promote sustainable practices in the food and beverage industry. The company is committed to reducing its environmental footprint, in clear alignment with the Paris Olympics 2024 goals of halving its carbon dioxide emissions compared to previous editions of the event.
Danone, for its part, has set ambitious environmental goals, such as achieving carbon neutrality by 2050. By focusing on sustainable ingredient sourcing, responsible packaging, and efficient production processes, the food giant has managed to almost halve its primary and secondary carbon emissions in 2021. With its ‘One Planet. One Health’ frame of action, which considers the health of people and the planet as intimately interconnected, Danone aims to inspire healthier and more sustainable eating and drinking practices. Ultimately, this is the direction in which the winds of change are blowing in international markets.
By linking these efforts with the Olympic Games, Danone not only shows its commitment to sustainability but also capitalizes on the global attention during the Games to drive awareness and action.
In addition, Danone is actively involved in initiatives that promote healthy living. Leveraging the platform of the Paris Olympic Games, the company advocates balanced nutrition, physical activity, and overall wellness. This initiative extends to partnerships with athletes who embody these values, serving as ambassadors for a healthier lifestyle with initiatives such as the Danone Sports Challenge, which seeks to bring sport and physical activity closer to people's everyday lives.
Community engagement forms another integral aspect of Danone's program. The company is investing in athletes and their local communities, sponsoring their way to the Olympic Games. This involves not only financial contributions but also active participation in community development projects, fostering a sense of unity and shared responsibility.
“Hearing athletes talk about the importance of regular exercise and a healthier, more responsible diet makes this message even more impactful. Together, we will create a sustainable, responsible diet and a healthier lifestyle, with exercise as the primary motivation. We are one planet, one community, one health” says Véronique Penchienati-Bosetta, Group Deputy CEO at Danone making clear the importance of this event for the company, which seeks to capitalize on its brand by aligning its goals and values with the Olympic spirit and underscoring the role of the Games as a catalyst for positive change.
Nonetheless, not all voices agree with the benign and friendly image that the company wishes to convey.
Eco-Friendly Facade: Danone's Greenwashing Chronicles
Danone's sponsorship of the Paris 2024 Olympic Games, while trying to present itself as a brand committed to sustainability and health, cannot go unnoticed without a dose of skepticism.
Coca-Cola, Nestlé, and Danone, giants in the food industry, are currently at the center of a legal controversy stemming from accusations of greenwashing in Europe. The accusations are that these companies are not telling the truth in their advertising and packaging when indicating the recyclable potential of their products. They thus join an extensive list of companies seeking to capitalize on the ecological trend initiated with the 2015 Paris Agreement.
On the other hand, the cases of abuse of water resources by these three companies are also widely known. Food companies, which promote the image of brands committed to sustainability, have come under fire for massive water abstraction in various regions, often negatively affecting local communities and the environment. While attempting to present a façade of environmental responsibility, reports suggest that both Danone and Nestlé have depleted local aquifers, leaving entire communities with water shortages. This discrepancy between sustainability rhetoric and actual actions raises crucial questions about these companies' true dedication to ethical resource management. Amid these demands and corporate responses, it is clear that transparency in sustainability claims is essential.
Danone $DANOY Financial Outlook
Danone will be reporting Q4 and FY23 earnings on Feb 21.
While Danone grew sales in all markets across all product categories year over year, their quarter over quarter results were flat in the first nine months of 2023.
Their FY2023 year-end guidance is for a +6% and 7% increase in sales (vs +4% and 6% previously). Based on the first nine months, this seems to be accurate, but final results will be disclosed at their upcoming earnings call.
Danone has been trading relatively flat since the pandemic of March 2020. The all-time high was reached in 2008 at $19, and in September 2019, their stock price reached $18.20.
