Stonyfield sells out to Danone
USA/FRANCE –, Gary Hirshberg, the man who came from nowhere to send shockwaves through US yogurt sector, is to sell Stonyfield Farm.
Fans of the underdog will surely have mixed feelings about the news that global food giant Danone has purchased a 40% holding in Stonyfield, with an option to buy a majority stake in the company in 2004.
Under the terms of the agreement control of Stonyfield’s management will remain with Hirshberg, the company’s founder, chairman, president and chief executive officer.
Stonyfield, with a turnover of 100 million euro, is the USA’s leading producer of organic yogurt and the country’s fourth largest yogurt brand. It is also the fastest growing US yogurt manufacturer, with a compound annual growth rate of 20%.
In the May 2001 issue of Dairy Industries International, Michael Heasman and Julian Mellentin said of Stonyfield in their regular Functional Focus column: “Stonyfield Farm is a dairy industry success story …, It has dislodged Yoplait-owned Colombo yogurts from fourth place in the north eastern United States and nationally has taken a 4% share. This is quite an achievement in a market overwhelmingly dominated by Danone and Yoplait.” (This article ‘An American success story’ is archived in our Library – click on the Related Articles link to read the feature from our May issue).
Danone directors, at least, will no longer be having sleepless nights over the surprising but unequivocal success of Stonyfield Farm. But fans of the eco-friendly, pro-gun control company might feel a little uneasy at its takeover by a 14 billion euro turnover a year multinational.
But Danone insisted the acquisition would not compromise Stonyfield’s values. Franck Riboud, the company’s chairman and chief executive said: “We want Stonyfield to leverage Groupe Danone’s strengths while retaining its own unique culture and management. We believe it is important for Stonyfield to continue to grow its market while maintaining its commitment to social responsibility.” Hirshberg added: “I am especially pleased with Danone’s commitment to our ambitious organic, environmental and social mission. The partnership is an excellent model for enabling emerging values-driven firms to gain in strength and stature while remaining loyal to consumers who support organic and natural products.”
Danone’s purchase of Stonyfield is reminiscent of the 385 million euro acquisition last year of the Ben and Jerry’s ice cream company by Unilever. Despite pledges that Ben & Jerry’s would be able to retain its ethical approach to business, a row broke out over the appointment of a new chief executive.
Unilever chose Yves Couette to replace Perry Odak in January –, against the wishes of co-founders Ben Cohen and Jerry Greenfield who said they were concerned that Couette would not adhere to the company’s social ideals. Cohen and Greenfield favoured a different candidate.
