COVID-19 Impact on Danone
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"Coronavirus (COVID-19) Company Impact: Danone" reports key findings as of May 18, 2020 based on market analysis and brand diversification by industry and geography.
Due to its high exposure to highly affected regions, Danone is expected to adopt defensive strategies to survive the impact of the coronavirus outbreak on brand sales. In its core food sector, geographic and product diversification will likely be required to stem the fall of brand sales. With social distancing measures across the globe, consumer shopping habits are changing. As is the case for many companies, adjusting business strategy to meet the change of consumer behavior and demand will be essential for Danone to ride out the crisis.
Scope
– Although Danone has a relatively high geographic presence across the world, its business sector concentration may cause low resilience to the adverse effect of COVID-19 on brand sales.
– A lack of diversification in Danone's food business means that it should focus heavily on defensive strategies in its core areas.
– A decline is projected in Danone's non-alcoholic beverages business due to weak demand for soft drinks during the crisis, particularly in its Asian markets.
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