How Danone Turns Bacteria into Bucks
Many areas of science have long been put at the service of business. Now it is the turn of microbiology, which, in alliance with the largest food companies in the world, strives to give the person of the XXI century the most healthy food.
If you look through a microscope, these bifido-beasts called DN-173010 look like some jelly-like pieces of crushed beans. However, when these bacteria enter your intestinal tract, they turn out to be strong subjects. Even gastric juice, which quietly dissolves metals, cannot cope with them. Having bathed in this juice, the bacteria follow further into the intestine, where, together with other microorganisms, they provide invaluable assistance in cleansing the human body of fecal masses.
Perhaps not everyone is interested in such details. But we have brought them to you in order to explain exactly what Groupe Danone, located in Paris, is making its billions on. Bifidobacteria is a key ingredient of their famous Activia yogurt, which is positioned on the market as a regulator of digestive processes.
Last year, the company's turnover from the sale of Activia alone amounted to $2 billion worldwide. This is 30% more than the results of the previous year. Analysts believe that the entry into the American market of Dannon products (the American branch of Groupe Danone) in 2006 became one of the most successful in the entire history of the food industry. U.S. sales are expected to reach $300 million this year.
Activia yogurt is the most obvious example of what Danone does better than all its other competitors. The main talent of the French is the transformation of bacteria into bucks! They used the most advanced scientific developments to identify microorganisms that contribute to improving a person's well-being and even the freshness of his appearance. Danone has become a leader in the production of functional food – this rapidly developing business area.
"What is the distinctive feature of this company? The fact that she has subjected her products to scientific and clinical research," says Gregor Reid, a microbiologist at the University of Western Ontario. "It's usually pharmacists who do this, not food scientists."
The headquarters of the French Danone Center for the study of bacteria is located in the southwest of Paris. It is a majestic and modern building built of glass and wood. It was here that scientists gathered a huge collection of 3,500 frozen bacteriological cultures. The beginning of this collection was laid back in the 1950s, when Danone employees began to bring various food products from their trips around the world and give them to university laboratories for research. The main goal of these studies then was to find new bacteria that would make yoghurts tastier.
Until recently, most bacteria were studied very superficially. For example, those well-known bifidobacteria were discovered quite a long time ago, and only after more than ten years scientists realized that they contribute to the elimination of constipation. But nowadays, armed with a new generation of research equipment with which it is possible to establish the DNA of a bacterium in three days, a group of 100 scientists is creating a collection of potential blockbusters of the food market. "The more we search, the more advantages we find for the human body," says Gerard Denariz, one of the researchers.
Scientific research is a very expensive thing. Danone spends about 1.2% of its revenues (about $240 million) annually on funding scientists. And if scientists believe that they have discovered a potentially healthy bacteriological culture, the company makes every effort to test these bacteria on humans. In 150 locations around the globe, 4,000 people have been drinking Actimel every day for six months, which, according to scientists, helps to increase immunity.
"If you use science for your business correctly, you will gain control of the market, as Danone did," says Julian Mellentin, executive director of the London–based Health Food Research Center.
Alexey Muzychuk, dp.ru , according to Businessweek
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18.11.2007