By Martinne Geller
CHICAGO (Reuters) - The slowing U.S. economy has not had any impact on Dannon Co Inc yogurt sales in the United States and its chief executive is unworried.
"We're really not stressed or taking a deep look into the overall situation," said Juan Carlos Dalto, head of France's Groupe Danone SA's (DANO.PA: Quote, Profile, Research, Stock Buzz) North American dairy business, at the Reuters Food Summit in Chicago. "Internally, we don't talk about economics."
"The market is so underdeveloped here ... and we believe as far as we can deliver value to consumers, there are no limits to the development of the market," Dalto said.
The average American consumes about 10-to-11 pounds of yogurt a year, or five-to-10 times less than people in more mature markets like Spain, France and Belgium, Dalto said.
To ignite U.S. sales Dannon has introduced Activia and DanActive, yogurt products containing certain live bacteria that Dannon says have health benefits. Activia, launched in 2006, is meant to aid digestion, while DanActive, introduced last year, is meant to promote immunity.
These brands should make up about 40 percent of the company's North American business this year, which Dalto estimated to be worth about $1 billion.
COST INFLATION
Like all food makers, Dannon has been struggling with soaring commodity costs over the last year and had to increase prices on its new introductions much sooner than expected. Continued...
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