What was changed
Danone was run by Emmanuel Faber, a CEO known for a strong social and environmental mission. Investors worried the mission had come at the cost of margins: growth was slow, returns were thin, and the board combined the chair and CEO roles.
Artisan Partners, Danone's third-largest shareholder with about 3%, and Bluebell Capital argued the company underperformed and pushed for a change. In March 2021 the board removed Faber as CEO, splitting the chair role from the top job.
New CEO Antoine de Saint-Affrique launched 'Renew Danone': cutting a slow-growth portfolio, investing in core categories, and giving each business a clearer profit target.
By 2023 the strategy was working: like-for-like sales growth recovered and recurring operating margin rose above 12%, proving the activist complaint had been about execution, not intent.
What it achieved
After CEO Faber left in 2021, Danone launched 'Renew Danone,' and recurring operating margin topped 12% by 2023 as like-for-like sales growth recovered.
Why it worked
Danone's margins were too thin for a leading consumer brand.
The CEO's dual chair-role made it hard to challenge him.
Artisan's stake and public critique forced a board response.
A sharper portfolio reset restored the cash generation the brand needed.
What can be applied
When a mission-driven CEO keeps missing financial targets, a minority of outside investors can force a leadership change that reconnects the brand to its economics.
Aftermath
Danone kept its social mission but ran it under tighter financial discipline. The 'Renew Danone' plan repositioned the portfolio and rebuilt margins, and the stock recovered as the market rewarded the shift.
FOLLOW THE EVIDENCE
The sources
- Inside Artisan's Battle With Danone — And What Critics Got Wrong institutionalinvestor.com
- Danone annonce la nomination d'Antoine de Saint-Affrique comme DG zonebourse.com