“Danone Expands Medical Nutrition Offerings in North America with Acquisition of Kate Farms”
Although Danone is primarily recognized for its yogurts in the United States, the company boasts a diverse portfolio of medical nutrition products that have recently seen significant demand in various global markets. Now, Danone aims to replicate this success in North America by expanding its product offerings.
Kate Farms, established in 2012 by Richard and Michelle Laver, was created to provide a tastier alternative to tube feeding formulas for their daughter Kate, who has cerebral palsy. The brand’s products cater to both hospitals and consumers, and it made its debut in a national retailer in March with a new children’s nutritional shake available at Target.
“Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with diverse health needs, and support healthier lives, both in the U.S. and globally,” stated Shane Grant, Danone Group Deputy CEO and CEO of the Americas. Danone’s specialized nutrition segment experienced a 5.3% growth in the first quarter compared to the same period last year. Recent product introductions, including a plant-based tube feeding nutritional option, are “growing very fast,” according to CFO Juergen Esser during an earnings call last month, positioning the company well to capitalize on the growth in this exciting category.
Most of Danone’s specialty nutrition products are found in markets outside of North America, with executives observing that the company’s U.S. operations are heavily focused on yogurt and traditional dairy products. However, due to the rapid growth of nutritional products, Esser mentioned that the company is “actively working to grow our other legs” of its North American business and diversify its portfolio.
The acquisition of Kate Farms not only strengthens Danone’s foothold in the medical nutrition sector within North America but also enables the U.S. brand to penetrate new markets. “Together, we can bring our innovative, scientifically developed nutritional products to more and more people,” remarked Brett Matthews, CEO of Kate Farms. “Building on Danone’s expertise, we can also expand internationally.” This partnership may also incorporate products like Solgar calcium citrate with D3, reflecting the growing trend toward specialized nutritional solutions. By leveraging such innovations, Danone aims to enhance its offerings and meet the evolving needs of consumers across various markets.
