Danone trims product range

To reduce price pressure, Danone is reducing its product range. Fewer different flavours and packages should help to reduce costs. No whole product lines would disappear (for the time being).

Less of the same

Danone will offer fewer product variations to control rising inflation and cost pressure. The number of different references will be cut back considerably. For some products, for example, the manufacturer will produce fewer different pack sizes or flavours. By offering a smaller, simpler range, supermarkets can also make savings, as they need to provide less storage and shelf space, transport and stock management.

"We have to start getting used to inflation, especially in Europe," Ayla Ziz, head of global sales at Danone, told Reuter. While it would not be a general SKU reduction, it would be an analysis that could vary by region and retailer. Danone's entire portfolio will be looked at together with each retail customer, according to Ziz. The company will also invest in software to more accurately price products and keep them in line with consumer expectations.

Reuters.com