Our goal is to reach 1 billion by four years

With the crisis, Danone has decreased its prices in many countries to avoid a fall in sales volume. This is not a simple temporary adjustment, explains Franck Riboud, the pattern of number a French agri-food, in the interview that il has given us. "We are at the opposite process of resizing the company to maintain these prices when the situation will improve," he announces. Because, beyond the crisis, the CEO is satisfied that the consumer will lasting behavior change.

You have to launch a capital increase of EUR 3 billion. Its magnitude was surprised and the title fell. Are you worried

Non. This fundraising is guaranteed by the banks, and our first three shareholders (Eurazeo, Predica and Sofina) have announced that they would participate in this operation. It is thus on track. The stock exchange reacted pretty: the decline of our our competitors is about the dilution by the capital increase. There was a bit of surprise, inasmuch as we were not at all obliged to raise this money. Our financial position is strong, we continue to identify significant liquidity and we could continue like this.

But who can say that the crisis is behind us We have chosen to anticipate and take advantage of shooting window presented to improve our balance sheet. We are reducing our debt. This allows us to not be under pressure to yield non-strategic assets that could not be properly valued and we gives financial flexibility to capture possible opportunities of acquisition.

What do you buy

There is no large acquisition in view. But small and medium sized operations are possible, especially in emerging countries and in dairy products fresh. If can be two, three or four...

What the current crisis you brings to change your strategy

Our strategy does not move. Our sales do not dive, we have no massive restructuring plan... However, it is true that the environment is more hard, and we do so just move the cursor on certain parameters. For example, we are more restrictive on investments. We have also revised the criteria for compensation of our managers, to give greater weight to the market share in volume, at the margins in absolute value, and to the "free cash flow". Better prices and increased volumes that close factories! This is what we do. In Poland, for example, one of the first countries where we launched the movement, we have lowered the average price of our dairy products of 12. In General, we do indeed lawyers not so much the reference price, but we play on promotions, we give 20 of more product for the same rate, etc.

And this works

A 1 to 5 price decline has no impact on the volumes. It must go beyond 10 to make it really effective. In Poland, this allowed us to find a strong growth in volumes ( 20). In the United States, they restart. So yes, our actions are beginning to bear fruit.

The risk is that you find it difficult to raise prices after the crisis...

But we absolutely do not want back them after the crisis! We are at the opposite process of resizing the company to maintain these prices when the situation will improve. Because it should not take this crisis to something passenger. You do not pass through such violence without that it permanently disrupts the attitudes and behaviour. Therefore, adapt. This fall, it is that it is ten years already that we act to make our products more accessible. In Bangladesh, in Latin America... Now, this policy becomes global. Even in France and in the United States, we offer relatively cheaper and larger formats.

The mission of Danone is to health by eating the largest number. If I back the price, I do not fill this mission. The crisis is instead an opportunity to accelerate. In the world, some 700 million people consume each month a Danone product. Our goal is to reach 1 billion by four years.

In this framework, bottled glue evil to your strategy. This is a product accused of being expensive, little green and whose sales fall in industrialized countries. Could you give this asset

No, not question! First, because these charges are unfounded. The Evian water naturally out of Earth, we protect the resource, and we use less and less oil to the cylinders. I am therefore convinced that this message will be heard and that sales of bottled water will stop back in countries such as the France. Then, and most importantly, 52 of our water sales are carried out in emerging countries, such as Indonesia, where sales are growing and where the margins are now higher than in industrialized countries. What makes that total is an area in which we are still growing.

This strategy of accessible products signs the end of innovations, such as your "beauty yoghurt" Essensis

Non. For example, we have just started Spain a low fat yogurt which increases the feeling of satiety. This yoghurt, which includes milk and soy proteins was already sold in Britain successfully. As Essensis, the crisis has led us to remove it in France, to focus on our successful products. But we will perhaps make another attempt a day.

The result of the negotiations on the price of milk you meet it

We are not the first online on this dossier, where Danone represents only 4 of the French dairy collection. Cheese groups are much more big players that we. However, I do not pay the more expensive than my competitors milk. One of the problems today comes from the fact that the remuneration of producers is not in line with the level of the market: there is a lag in time between the price paid to producers and the market. Danone has played its positive role in this crisis. Because we know what we owe to the producers. If there was more milk in France, should be that we made our yoghurt with milk powder imported and our products, which are all made with liquid milk today, would be significantly less good.

The fact that the milk be paid cheaper producers Germans or poles it a problem you

No, because we have production across sites and therefore we we provide to the local price.