Danone Wins Back Russians With Siberian Bog Fruit
- Activia, Actimel volumes growing as Russian inflation eases
- Dairy maker using local flavors like cloudberry and bilberry
Cartons of Activia prune flavored yoghurt pass along a conveyor belt on the production line in the Danone SA dairy product manufacturing plant in Lyubuchany, Russia, on Monday, April 25, 2016. Photographer: Andrey Rudakov/Bloomberg
Danone, the world’s largest yogurt producer, has turned its Russian business around by finding growth in the most unlikely of places -- Siberian bogs.
Danone has injected cloudberries, amber-colored fruit grown in swamps and bogs, into its Actimel yogurt, while sister brand Activia has adopted a thick, peasant-style variant. That’s helped the two flagship brands return to growth in the first quarter. Profitability has also improved as the French company shifted to more innovative products, according to Bernard Ducros, head of the business in Danone’s fourth-largest market.