The factors in favour of a rise in the Danone share price:
It goes without saying that the Danone group's first asset is its positioning on the global food industry market. Indeed, the French group is currently the international leader in this sector and is also extremely well positioned in a few activities and types of products in particular. Indeed, Danone is notably the international leader in the fresh dairy products sector and alone accounts for more than 48% of sales. The company is the second largest seller of infant nutrition products, accounting for more than 23% of sales. Finally, Danone is the world number three in the bottled water sector with a 22% market share. It also benefits from an interesting position in the field of medical nutrition.
Investors in Danone shares also appreciate the long-term strategy implemented by the company. This strategy has the main objective of simplifying the group's business portfolio, but also of strengthening the visibility of its brands. Today, five of the company's brands alone generate sales of more than €500 million. Of course, the group's long-term strategy also includes the development of its activities and a long-term presence in emerging countries, which are currently the focus of much interest.
As part of this international development strategy, Danone has the intelligence to concentrate its most important projects in a few priority countries. These include Mexico, Indonesia, China, Russia, the United States and Brazil. These 6 countries offer many advantages, including a large population and therefore significant potential.
The Danone group has already strengthened its position on the US market. This has been made possible in particular thanks to the diversification of its activities in certain niches such as vegetable milk or organic dairy products through the purchase of a few American companies such as Mead Johnson or WhiteWave. Thanks to these recent acquisitions, Danone has succeeded in climbing to the top of the list of companies offering organic products and has doubled its presence in the United States.
Finally, the last advantage of the Danone share concerns the very rating of this company, which is among the best rated in the world, particularly in terms of its social responsibility. It thus gains the confidence of investors around the world.