INDULGENCE

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INDULGENCE
2THE
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INDULGENT
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TA S T E
5
INTENSE
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TA S T I N G
INDULGENCE EVERYONE
AT T I T U D E GOODNESS INDULGENCE EXPERIENCE
O P P O RT U N I T Y LOVES
THE INDULGENCE OPPORTUNITY

Indulgence is changing We are proud to Our territories How we will win

play
INDULGENCE
IS CHANGING
 #1 #5 #9
Indulgence and Indulgence can be People are looking
wellbeing are no longer just a small piece for indulgence “my
in opposition of perfect pleasure way”

#2 #6 #10
Indulgence can also The visual impact is
Indulgence comes in fully leverage a more important than
many different shapes &
The rules of
multi-sensory ever
forms experience

indulgence are
being #7
#3 Indulgence is about a
Opening
re-written. There is space for natural holistic experience
and simple pleasure in that blends together
indulgence product, place and
emotion
up
game-changing
opportunities
#4
It’s all about the #8 in EDP.
QUALITY, showcased Indulgence can be relevant
through provenance & at any time of the day
craftmanship

5
HEALTH & INDULGENCE… NOW BLURRING THE LINES

HEALTH
Yogurt Chocolate yogurt
with honey drinks

Fruit & chia Chocolate

indulgent drinks smoothies
INDULGENC
E
 LOW CALORIES ICE CREAM +6
PB DESSERTS + 13 %
%
#1
#1
Consumers
are looking for
indulgent 51% UK consumers agree that "healthy characteristics" make an indulgent snack
products that they more appealing (Source: Mintel consumer survey)

can feel good WHITE INDULGENCE +7% HIGH PROTEIN PUDDING +22 %
about

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#2 Simple Sophisticated

Indulgence comes Sweet Savoury

in many different
shapes
& forms Monochrome Colourful
Indulgence isn’t limited to a
particular category or flavor. It
spans both sweet & savoury and
goes beyond chocolate & desserts
– the likes of coffee, smoothies,
savoury snacks and even dips all
play in indulgence. Individual Collective

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 As much as there is a
push towards

#3
sophisticated
indulgence, there is a
reverse push towards
simple and natural
yet intense pleasures

There is space for

natural and
simple pleasure in
indulgence
Whether that’s by exploring beautiful
textures and pure and unadulterated taste,
there is space in indulgence for simple and
wholesome ingredients, recipes and taste
experiences.

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 “ I am willing to pay more to have better quality.

#4
When I can see the origin of ingredient used and the artisanal production process,

”
it gives me perception of higher quality, like more care has been put in my product.

It is all about the 51% of Italian would pay more

for high quality ingredients in
QUALITY, packaged desserts
showcased through
provenance &
craftmanship

We see indulgence evolve into a space that

revels in quality: offering premium ingredients
that have been crafted with care, and richer
stories that showcase provenance. This type of
quality isn’t necessarily complex or fancy, it can
be simple and minimal.

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 #5
Indulgence can be
just a small piece
yet giving full
pleasure
People want the flavour and the indulgent
experience in small and intense bursts.
Bites, nibbles and mini morsels are just as
delightful, but more balanced and
permissible, as larger indulgent treats.

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#6
Indulgence can also
fully leverage a
multi-sensory
experience

It’s no longer just about colour.

Think of a treasure hunt of taste,
layered textures & crunches, bits
and bites, visual cues, scent &
sound.

81% of French consumers would like

to see ice cream with ingredients that
add different textures (crunchy, chewy, etc)
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 17% of US consumers have

#7
ordered food from
entertainment venue (ie
involves food/drinks with
activities) in the past 3 months
Restaurant Decision Making Process –
Mintel, US, October 2019
Indulgence is about a
holistic experience that
blends together product,
place and emotion, very
sharable (#Instagram)

Memorable moments of indulgence

tie together product, place, and
emotions in perfect harmony, to
takes people on a journey. We
cannot afford to think of our
59% of surveyed consumers say they have consumed on-
products in isolation. premise coffee in-store because the place was good for
meeting friends [On-premise Coffee – Mintel, China, December 2018 ] 13
 BREAKFAST MORNING

#8
Indulgence is AFTERNOON EVENING

relevant at any
time of the day
Whilst some moments are more
prone to indulgence, there is no hard
and fast rule. Moments of
indulgence are not limited by time
of day.

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 #9
MAGNUM PLEASURE STORE

People are looking 23% of UK adult chocolate buyers are willing to

pay more for the option to personalise/customise
for indulgence chocolate when buying it as a gift
“my way” Chocolate Confectionery – Mintel, UK, May 2019

People are looking for a platform to

add their own personal stamp to their
products.

Whether that’s through deciding on a

flavor, in-store customization or at-
home D-I-Y, people crave the
opportunity to enjoy indulgence “their
way”.
#DIYDESSERTBAR CHOBANI CAFE
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 #10
The visual impact
is more important
than ever

Being “Instagrammable” packaging

is important – especially for Gen Z
who like to share indulgent moment
on social media

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 WE ARE
PROUD TO
PLAY
INSIGHT
Indulgence is an essential joyful,
celebration of good food - it’s an essential
part of a healthy life

TENSION

There’s an world of Indulgence as seen on

supermarket shelves – it’s a restrictive
view of how diverse Indulgence has now
become.

REALITY
 AS DANONE, WE HAVE SOME HISTORIC CORE EQUITY

DAIRY KNOW HOW ESTABLISHED PLANT-BASED THE DANONE

& HERITAGE TRADITIONAL EXPERTISE MISSION
BRANDS
Fresh Healthy Trusted Convenient Family Quality Progressive Sustainable
 AND NEW CAPABILITIES AND KNOW-HOW…

DAIRY KNOW HOW ESTABLISHED PLANT-BASED THE DANONE

& HERITAGE TRADITIONAL EXPERTISE MISSION
BRANDS
Fresh Healthy Trusted Convenient Family Quality Progressive Sustainable
 AND NEW CAPABILITIES AND KNOW-HOW…

THE DNA OF OUR

INDULGENCE EQUITY
DAIRY KNOW HOW ESTABLISHED PLANT-BASED THE DANONE
& HERITAGE TRADITIONAL EXPERTISE MISSION
BRANDS
Fresh Healthy Trusted Convenient Family Quality Progressive Sustainable
 INSPIRING A NEW MISSION

“To re-imagine irresistible Indulgence brands

that are loved by millions for their taste,
proximity and how they are better for you
and the planet.”
WE HAVE A BIG PLAYGROUND

Provenance
Responsible Sourcing
No artificials Local
Sustainability
Quality of ingredients Less processes
B-Corp
Source of good things Naturality
Recyclability
Portion control
 OUR
TERRITORIES
DRIVERS OF INDULGENCE 6 Key drivers

Taste everyone loves

What is driving consumption in OUR INDULGENCE SCOPE…

Spoonable Popcorn/ Biscuits/

Ice-cream RTD drinks Fruits Special Celebration
yogurts Crisps. Snack Bars

Nuts/
Chilled desserts Sorbet / popsicle Chocolate Hot drinks Dips
Fruit & nut mix
Cakes/ Daily Nibbling
Drinking yogurts Smoothie Sweet/candy
Pastries

I deserve it
today
Looking into OUR KEY GEOGRAPHIES

Sweet hit

Balanced
Indulgence
FURTHER STRUCTURED INTO 3 KEY TERRITORIES

INDULGENT TA S T E
INTENSE
GOODNESS E V E RY O N E
INDULGENCE
LOVES

Rational Indulgence Emotional

Control spectrum Let it go
Healthier Hedonistic

Danone
EDP
Indulgence
Portfolio
 Nut, seed, and fruit slice. No
rubbish, no added anything.
Featuring dates. Cacao, sultanas
and a dash of honey! No guilt and
stacked full of nutrients

INDULGENT Source: Instagram

GOODNESS

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 INDULGENT
GOODNESS

TOP GROWING CATEGORIES IN COUNTRIES

LOW SUGAR/ CALORIES GREEK STYLE PLAIN GREEK STYLE HOT FLAVORS GREEK STYLE FRUITS
ICE CREAM YOGURTS (CHOCO, CARAMEL…) YOGURTS

CAGR SIZE M€ CAGR SIZE M€ CAGR

SIZE M€ GROWTH % SIZE M€

1074 + 4% 222 + 7% 60 + 18% 152 + 5%

121 + 6% 97 + 7%
96 + 6%

30 + 23% 30 + 15%

Source: Nielsen / IRI Retail panel latest MAT available & Euromonitor
 INDULGENT A moment of indulgence that balances pure pleasure with
GOODNESS reassuring wellbeing claims like calories, sugars, fats,…

OUR GOAL
Offset guilt in traditional indulgence by making it
permissible
PURE PLAYERS

Plant-Based brands Native Indulgence

My Generation
expanding into brands developping
PILLARS brand expanding into
indulgence in this space through
indulgence
(Alpro, Silk, So innovation
(Light&free)
delicious) (Danette, Danissimo)

SNIPERS

EXAMPLES OF
WHAT IT
COULD LOOK
LIKE
 TASTE
EVERYONE
LOVES

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 TASTE EVERYONE
LOVES

TOP GROWING CATEGORIES IN COUNTRIES

DESSERT WITH
TOPPINGS
JELLY MOUSSE

SIZE M€ CAGR CAGR SIZE M€ CAGR

SIZE M€

206 + 1% 201 + 4% 181 + 3%

77 + 28% 52 + 9% 23 + 79%

50 + 8%

Source: Nielsen / IRI Retail panel latest MAT available

 TASTE EVERYONE
LOVES

TOP GROWING CATEGORIES IN COUNTRIES

CUSTARD/ PUDDING DRINKABLE INDULGENCE RICE DESSERT

SIZE M€ CAGR CAGR SIZE M€ CAGR

SIZE M€

359 + 2% 283 + 7% 107 + 1%

48 + 24% 48 + 18% 21 + 7%

42 + 14% 27 + 6%

Source: Nielsen / IRI Retail panel latest MAT available

 TASTE Enjoying familial flavors everyone loves that brings back
EVERYONE memories of your childhood or bring you together with your
LOVES loved ones

OUR GOAL
Cultivate a shared, sometimes nostalgic joy that can become
a touchstone for everyone
PURE PLAYERS

Take as many opportunities as

PILLARS Identify priority markets where this is
possible to re-invent traditional/local
a huge growth area and consider new
classics, including mousses, flans and
brand or acquisition
rice pudding

SNIPERS

EXAMPLES OF
WHAT IT
COULD LOOK
LIKE

Homemade flan - Cajeta

 After good long day, place your feet
up and enjoy moment to yourself
#Chocolate

Source: Instagram

When you leave your house at 4

am for work and return at 3:30

INTENSE
pm from work – this is what
happens…make up off and ice
cream in hand

INDULGENC Source: Instagram

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 INTENSE
INDULGENCE

TOP GROWING CATEGORIES IN COUNTRIES

ICE CREAM COFFEE DRINKS CHEESE CAKE

SIZE M€ GROWTH % SIZE M€ CAGR

SIZE M€ CAGR

3488 + 2% 1398 + 10% 298 + 5%

2216 + 6% 28 + 15% 146 + 1%

16 + 28%

Source: Nielsen / IRI Retail panel latest MAT available & Euromonitor
 INTENSE A well deserved moment to yourself enjoying an
INDULGENCE special treat to help you unwind

Offer generous permission for people to immerse

OUR GOAL themselves in imaginative, rich, indulgent flavours and
PURE PLAYERS textures

Consider expanding
geographically Develop a My
Partly
PILLARS Expanding Danette into
Danissimo/Fantasia- Generation brand, with
world of intense
like execution an intense multi-
indulgence
(including unisex sensorial experience
proposition)

SNIPERS

Partly EXAMPLES OF
WHAT IT
COULD LOOK
LIKE
 THIS INDULGENCE SPECTRUM IS HUGE WITH A TOTAL MARKET OF
15B€

TA S T E
INDULGENT EVERYONE LOVES INTENSE
GOODNESS INDULGENCE

DRIVER SIZE
5.2 3.8 5.6
VALUE 2019 B€
B€ B€ B€

Core & adjacent

indulgent categories 49 112 196
in Value 2019

Global scope: 14 countries : AR, BR, MX. RU, US, BE, GER, FR, ES, PL, IT, UK, TR, JP
Data source: Euromonitor , Retail panel (IRI, Nielsen, Intage), Global data
 WITH A 1B€ SALES VALUE OPPORTUNITY IF WE REACH OUR FAIR SHARE

TA S T E
INDULGENT EVERYONE LOVES INTENSE
GOODNESS INDULGENCE

DRIVER SIZE
5.2 3.8 5.6
VALUE 2019 B€
B€ B€ B€

+ 0.5 B€ +0.3 B€ + 0.3 B€

DANONE
INCREMENTAL
VALUE SALES
(when reaching fair
share)

1 B€ VALUE SALES IN
TOTAL
Global scope: 14 countries : AR, BR, MX. RU, US, BE, GER, FR, ES, PL, IT, UK, TR, JP
Data source: Euromonitor , Retail panel (IRI, Nielsen, Intage), Global data. Size scope = Chilled dairy & PB desserts + Indulgent (creamy) Yogurts+ Yogurt drinks
AN INDULGENCE BRAND PORTFOLIO WITH LOTS OF GAPS &
OPPORTUNITIES

OTHER
EUROPE
REGIONS
TA S T E TA S T E
I N T E N S E I N T E N S E
I N D U L G E N T G O O D N E S S E V E RY O N E I N D U L G E N T G O O D N E S S E V E RY O N E
I N D U L G E N C E I N D U L G E N C E
L O V E S L O V E S

= No offer from Danone

HOW WE WILL
WIN
BY LEVERAGING KEY TRENDS

TA S T E
INDULGENT EVERYONE LOVES INTENSE
GOODNESS INDULGENCE

Indulgence is about a holistic

Indulgence and There is space for natural It’s all about the QUALITY, Indulgence can be just a Indulgence can also People are looking
experience that blends
wellbeing are no longer and simple pleasure in showcased through provenance small piece of perfect fully leverage a multi- for indulgence “my
together product, place and
in opposition indulgence & craftmanship pleasure sensory experience way”
emotion
 AND DOUBLING DOWN ON OUR KEY GROWTH LEVERS
THINK
EXPERIENCE
FIRST
• Starts with the quality and
taste experience of your
products
• Be obsessed in offering the
best tasting experience
• Every little detail counts –
Involving all senses
• Indulgence is a ritual going
beyond the product
BE RELENTLESS IN
CREATING
INTERUPTION
• We treat as desDestination
• Master INTERUPTION in
store as an excuse to
animate the core
• Continuous activation
v
through cool collaboration,
partnerships & limited
editions
• Multiply moments of
interruption by building a
yearly activation calendar
CHANNEL AT THE CONTINUOUS MASTER THE
CORE REINVENTION FORMAT PLAY
• Desig product offering with
• Create continuous
channel in mind (single-
excitement and surprise
serve, easy packaging,..)
• Right visibility (on-shelf, with a strong innovation
agenda
secondary placement, …)
v (meal
• Right activation • Pioneer new paradigm
deals, cross-category indulgence
promo, instant win)
• Explore new channels as a • ??? Create inters &
curiosity / excitement –
way create an experience
but core core core
(Delivery services, …)
 MISSION & AMBITION Bring joy to people through delicious, imaginative, indulgent
food that shakes up ‘old’ indulgence by being better made - for you
and the planet

TRENDS

Indulgence is about a holistic

Indulgence and wellbeing are
no longer in opposition
There is space for natural and It’s all about the QUALITY, Indulgence can be just a
simple pleasure in indulgence showcased through provenance & small piece of perfect
craftmanship pleasure
Indulgence can also fully People are looking for
experience that blends together
leverage a multi-sensory indulgence “my way”
product, place and emotion
experience

TERRITORIES
INDULGENT TA S T E INTENSE
GOODNESS EVERYONE LOVES INDULGENCE

GROWTH
LEVERS

THINK BE RELENTLESS IN CHANNEL AT CONTINUOU MASTER

EXPERIENCE CREATING THE CORE S THE
FIRST INTERUPTION REINVENTI FORMAT
ON PLAY