Danone is concerned not only with the good health of its business but also its customers and to change intent into reality to accomplish a circular economy.
Danone has become a world leader in four businesses: Essential dairy and plant-based products, early life nutrition, medical nutrition, and water. Building on a unique health-focused portfolio has enabled it to become a key player in the food revolution.
Packaging MEA Technology Editor Vikram Fotedar spoke with Samir Moftah, Danone Egypt’s Director of Research and Innovation plus Quality and Food Safety.
Packaging MEA (PMEA): Can you tell me about Danone’s activities in the MEA region, and particularly Africa?
Samir Moftah(SM): At Danone Egypt, we have two businesses. One is early life nutrition, in other words baby formulas, and the other is everyday dairy products. We manufacture all
our dairy products in Egypt starting from the farm. We have the farm where the milk is produced and the milk is later converted into yogurt and UHT milk which is sold
in the market. We do export, but most of our business is in Egypt. Our early life nutrition business is imported entirely from Europe.
PMEA: Within the yoghurt segment, what circularity and recyclability measures is Danone undertaking?
SM: Packaging is critical to provide our consumers with nutritious, high-quality food and drinks. We recognize that this cannot come at the expense of the health of the planet so our approach to packaging plays an important part in this. As a food & beverages company that consumers trust, we want to play our part in accelerating the transition from a linear to a circular economy of packaging, where products and materials remain in use and stay in the economy; waste and pollution are eliminated; and natural systems are regenerated. At Danone, we published our Packaging Policy affirming our commitment to co-building a circular economy of packaging by sourcing sustainable materials and creating a second life for all plastics. We will take a full-system approach, working to ensure that, in driving circularity, we avoid unintended consequences for greenhouse gas emissions, shelf life, food waste and water use, etc. As part of our global circular economy policies we are looking at converting our pots from PS globally by the end of 2025, which is hard to find recycling for.
PMEA: We are talking about you moving away from polystyrene towards polypropylene or PET. What kind of lid would be used for this package?
SM: Currently the lid is manufactured locally. It is an important part of the product. We are looking at how we can make it more sustainable while making sure that we don’t impact the product and making sure it remains consumer friendly and affordable. Achieving 100% circular packaging requires breakthrough innovation in order to offer circular yet affordable options.
PMEA: There have been initiatives towards moving away from aluminum packaging. Is this something Danone is planning to adopt in Egypt?
SM: We are yet to find a solution to [do away with aluminium] and protect the product at the same time. Some of our dairy products have a six-month shelf life, so we are trying to find a balance. We are reaching out to the industry to see if there is an alternate solution. The trick is how do you get something that the consumer accepts but at the same time provides sustainability.
PMEA: Do you see that coming into the liquid segment?
SM: Yes, we have some flexibles coming into the liquid segment. One of the things we talk about a lot is “on-the-go consumption”. Consumers are looking for products that are easy to handle and consume while they are walking, driving etc. What I also see is that a lot of flexible technology is becoming easier to recycle. We are starting to see a real drive in that area.
PMEA: How large is the Egypt market? What is the growth rate from the dairy perspective and generally from food perspective?
SM: I am excited about Egypt. There is a lot of potential. There are 100 million consumers. If you look at the Egyptian consumer from A class to E class, they have different needs and requirements. There are a lot of basic needs like food that is safe, high quality and from brands that they trust. The Egyptian market is growing, which is great, but it is a tricky market. You should be able to cater to different needs and that require understanding the consumer very well. The dairy market is very competitive in Egypt. We are excited about the competition; it keeps us all on our toes and we are trying to satisfy the 100 million people.
PMEA: Another big advantage that Egypt has is that it is on the crossroads of the Middle East, Africa and Europe. Is that part of your strategy going forward, to make it a manufacturing hub for the wider region, or will you be primarily be working in the Egypt market?
SM: Yes we do! Egypt’s location provides several advantages which we intend to take advantage of; however, our products have a shorter shelf life compared to Europe due to current regulations in Egypt. This makes it more difficult to consider some markets that require longer shipping times.
PMEA: In other parts of the world, Danone is also doing cheese. Are you also?
SM: No, in Egypt, we have a yoghurt business and a ready-to-eat dessert business. We see added value in those two, from both the product point of view and from the packaging point of view. We are looking for ways for consumers to consume our product on the go. It is not just about products we can bring to the market, but also new ways to consume the product., which is packaging- driven.
PMEA: Can you talk about challenges you are facing from a packaging procurement perspective, and anything you would like to see done differently. Is there any message you would like to pass on to our readers?
SM: It is a competitive & cluttered market so we are opening our eyes to the ability to stand out on shelf. I have been reading a lot about connectivity. I haven’t seen any converters coming with that kind of new technology in the region. It will be good for the industry to get together and address the sustainability angle. In Egypt, we have an opportunity to make a difference. There is an opportunity for us to reduce waste and increase the recyclability of all our products. At Danone, we focus on healthy products and healthy living, but we see that healthier products and awareness of good nutrition is critical. Through the company’s portfolio, we have made it our priority to are really trying to drive this health message on good nutrition. I know we can make an impact in this area, because there is a definite need to have healthier products in Egypt.
PMEA: I have come here a few times and I cannot help but notice that obesity among the youth is a problem in Egypt.
SM: You are right. I have seen the statistics published by the UNICEF which shows that 14.2 percent of under-fives are classed as overweight and 27% of children under 5 and 25% of women within reproductive age (15-49) years are anemic. There are a lot of issues and the government is actively working on screening people and creating awareness. We are trying to play our part as well. We have taken a couple of initiatives in that area to help our consumers to better understand what healthy eating is like and what are the components of healthy eating. Hopefully we can make a difference. You are right, the situation needs immediate attention, and the government is acting on it and we in the food industry have a role to play.