Sales of Activia and Actimel have continued where they left off in 2008 in the first quarter of 2009, with 50% of Activia's double-digit growth coming from its new Intensely Creamy posh desserts range.
In a static market, volume sales in Danone's dairy division were up 9.4%, in the first quarter, with sales of Activia up 15.2% and Actimel up 9.4% [Nielsen], helping Danone grow its Q1 share from 13.6% to 16.5% YTD. Growth even accelerated in March, with sales of Activia up 24.6% and Actimel up 21.5%.
"We are a premium brand, and all of this uplift has been at a time of doom and gloom," said UK general manager Marnix Eikenboom. "You would have thought all the money would have gone into private label. But the growth proves the power of strong premium brands even in a downturn."
Eikenboom attributed the success of Danone's leading brands to a focused strategy devised to ensure yoghurt became a daily essential. Tie-ups with Sir Bobby Charlton and Nell McAndrew had helped grow household penetration and engaged consumers, he said.
Sales of Activia Intensely Creamy accounted for 50% of Activia's volume growth in the latest quarter. Launched in September last year, the four-flavour range of luxury pot desserts had been a "runaway success", said Eikenboom. "We initially had huge difficulties delivering because the demand was 100% over our most ambitious forecasts." Due to the initial success in the UK, Danone has since rolled out the line in Belgium and Ireland and it will be on sale in Germany from next month.
Eikenboom denied that Danone was buying share at the expense of margin, but admitted that the devaluation of sterling was a challenge, as all product was manufactured on the Continent.
"We could have increased prices, but didn't. If we can keep the momentum going on the topline, that's the biggest insurance against the exchange rate."
Focus on Yoghurts p51
In a static market, volume sales in Danone's dairy division were up 9.4%, in the first quarter, with sales of Activia up 15.2% and Actimel up 9.4% [Nielsen], helping Danone grow its Q1 share from 13.6% to 16.5% YTD. Growth even accelerated in March, with sales of Activia up 24.6% and Actimel up 21.5%.
"We are a premium brand, and all of this uplift has been at a time of doom and gloom," said UK general manager Marnix Eikenboom. "You would have thought all the money would have gone into private label. But the growth proves the power of strong premium brands even in a downturn."
Eikenboom attributed the success of Danone's leading brands to a focused strategy devised to ensure yoghurt became a daily essential. Tie-ups with Sir Bobby Charlton and Nell McAndrew had helped grow household penetration and engaged consumers, he said.
Sales of Activia Intensely Creamy accounted for 50% of Activia's volume growth in the latest quarter. Launched in September last year, the four-flavour range of luxury pot desserts had been a "runaway success", said Eikenboom. "We initially had huge difficulties delivering because the demand was 100% over our most ambitious forecasts." Due to the initial success in the UK, Danone has since rolled out the line in Belgium and Ireland and it will be on sale in Germany from next month.
Eikenboom denied that Danone was buying share at the expense of margin, but admitted that the devaluation of sterling was a challenge, as all product was manufactured on the Continent.
"We could have increased prices, but didn't. If we can keep the momentum going on the topline, that's the biggest insurance against the exchange rate."
Focus on Yoghurts p51
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