The company Nutricia Nutrition Clinique takes over the distribution of the Blédina and Laboratoire Gallia ranges in Réunion, previously entrusted to Mondelez. Through this operational reorganization, Danone invests more locally, and this is the entire philosophy of a pioneering group in health food, social progress and environmental preservation, which appears. Distributed mainly in supermarkets, Blédina, Blédilait and Laboratoire Gallia are Danone’s major infant nutrition brands. Distributed, under medical supervision, in the pharmacy circuit, from home health providers and hospitals, Nutricia is the group's medical nutrition brand. These brands occupy first place in their respective markets in Reunion Island. This is why the change that occurred last month in their local distribution deserves to be highlighted. Gain in efficiency, gain d’expertise : the reorganization gives even more weight to the message of a transparent and responsible company which underpins Danone’s identity. For Meeting Leader, Jourdan Blangenois, Indian Ocean Area Director at Danone Specialized Nutrition, specifies the contours, the ins and outs.
Previously provided by Mondelez OI, distribution of Blédina ranges, Blédilait and Gallia are now the responsibility of Nutricia. Why this change ?
The Danone group is historically known through four activities : dairy and plant-based products, mineral waters (Evian, Volvic, Badoit, Salvetat in mainland France, notably), la nutrition infantile (Blédina, Gallia Laboratory, Blédilait) and medical nutrition (Nutricia). In 2020, the group has chosen to bring two entities together, medical nutrition, present in France through the Nutricia Nutrition Clinique entity, and child nutrition, present through the Blédina entity, to create Specialized Nutrition. With this reorganization, we want to meet the specific nutritional needs of people throughout their lives : from the first days until old age, but also in case of illness. Until 2008, Danone operated directly in Reunion through the Danone International Brand structure ("BACK"). The DIB notably marketed the LU and Blédina brands. The sale of LU to Kraft that year ended our local presence as a subsidiary. For practical reasons, the distribution of our infant nutrition brands has been entrusted to Kraft, later became Mondelez. Nutricia operated, on his side, directly from pharmaceutical wholesalers who distributed its products to pharmacies, hospitals and home care providers, our three main clienteles in the medical part. The creation of Specialized Nutrition shook up our organization and pushed us to reinvent our operating method. It is in this context that Nutricia Nutrition Clinique, entity of the Danone group, is the new distributor of Laboratoire Gallia brands, Blédilait and Blédina in Reunion and Mayotte. I would like to emphasize that we have been fully satisfied with these many years of collaboration with Mondelez, which have contributed significantly to making our brands the essential leaders in infant nutrition..
Should we see only a desire for rationalization and better logistical and commercial control?, or is a new strategy being deployed through this reorganization ?
We are convinced that through specialized nutrition, we have a lot to gain, both in terms of synergies and potential, and this for all stakeholders. In order to deploy the rapprochement between our two entities, we had to locally reinvent our way of operating. We were convinced that the best organization, it’s the choice of location : be closer to our customers and consumers. This new business model should allow us to strengthen our quality of service by developing our business and category expertise.. It makes us more flexible in the face of an environment that is changing more and more quickly., as recent years have demonstrated with the health crisis. Through this reorganization, we will be able to better meet the needs of consumers and patients by controlling most of the levers of our categories, of the medical examination, through marketing or logistics, to the point of sale. But the first requirement of this new approach is towards the most fragile and particularly here with the little ones of Reunion Island. : with this new model, we guarantee a high level of quality in nutrition.
Working on sensitive products such as infant and medical nutrition imposes particular responsibilities on you ?
Two major responsibilities are required on a daily basis at Danone. The first one, it’s the quality of the products. It takes precedence above all. You should know that a large part of our products are stored and delivered fresh. We respect drastic specifications. A little potty for baby, For example, is subject to three hundred quality control points carried out from field to plate. The second major responsibility at Danone, just as important, is the safety of our employees.
Is the change in organization of product distribution already effective or in progress? ?
By changing model, our teams are in the process of discovering or rediscovering an exciting profession : that of Reunion distribution ! This job, each person on the team does it with passion and commitment, I am very proud of the work done by each of them. It has allowed us to have an excellent opening since the beginning of May. The roadmap was ambitious and we broke it down into several stages. January 1, 2021, we recovered the Blédina pharmacy business. The 1st from 2021, we consolidated the Blédina and Nutricia businesses in the health networks with the creation of the Danone Specialized Nutrition team, overseas. The last step was the resumption of the GMS business, and also hospital, of Blédina since May 1, 2022.
What are the implications for your GMS and pharmacy customers? : new interlocutors, new delivery times, etc. ?
We are organized by network in order to respond to the particularities of each distribution circuit. Firstly, so-called “health” networks : the pharmacy, the hospital, home care. On the other hand, a large distribution network. To build our new GMS team, new activity for us, we recruited 12 people. We had the pleasure of integrating seven people from Mondelez, which allows us to secure local know-how. We have promoted a person internally within the Danone group. The rest of the team is made up of local recruits. We stay, at least, on the same order and delivery standards in order to secure the transition.
And for consumers ?
To begin with, during the handover phase, our goal is for this change to be transparent for our consumers. Our ambition is to ensure the same service delivery, or even develop it when relevant.
Products sold in pharmacies have greater medical expertise than those sold in supermarkets. Can we deduce from this that the Blédina and Laboratoire Gallia ranges now benefit from more in-depth expertise in supermarkets thanks to Nutricia Océan Allemand ?
We will now have the opportunity to master all the levers of the infant food category. : from the medical visit to the final points of sale, which will make us more complete and more efficient. We have two sales forces. The health sales force to market the reimbursed ranges (Nutricia) and not refunded (Blédina) in pharmacy, to the hospital, but also with our home care provider partners. And the GMS sales force to market only Blédina products, Gallia and Blédilait laboratory in retail. The strength of our GMS team is to be focused on a single category : baby food grocery store (AIE). We will work more as a team, with greater category expertise and a more impactful focus capacity. Typically, the marketing function, to take this example, was previously separated from the sales force and
(Stéphane, Jean Marie, René, Made, Johnny and Sébastien)
commercialisation. From now on, all these functions are associated in the same team. We will be more impactful, particularly on key events by coordinating communication campaign and in-store events. It is very clear that we are strengthening our expertise and our focus on the Infant Food category. Of course, this also involves new logistical partnerships, transports et merchandising, with quality local players.
What are the respective weights of infant nutrition and medical nutrition in your activity? ?
Le circuit GMS (nutrition infantile) has become our first distribution network in the Indian Ocean, but on Reunion Island the turnover is balanced between the Health network and the GMS network. It's generally 50/50.
Is this a Reunion specificity? ?
In a city, the share of mass distribution is perhaps a little more important. On the other hand, we have a real Reunionese particularity in terms of brands : Blédilait occupies a much stronger position in our territories, it is a brand that has managed to establish itself in the Reunion landscape for several generations. Some of our references are also exclusive to Overseas Territories, like Blédilait growth 18×250 ml or even Blédikids (from 3 to 7 years old). From our point of view, I would say that our local specificity, this is the strength of our brands and the relationship of trust that we have been able to build with our consumers.
Does the reorganization of distribution also aim to do even better in terms of quantitative results? ?
With 10 market share points gained in seven years*, the development achieved in recent years has been remarkable ! It gave us the critical size which now allows us to operate more autonomously. As I have said, our first objective, short term, is to ensure business continuity for our clients and our consumers. Once we have tested our new model, we will seek to optimize it and regain growth dynamics via different levers.
Pharmacies were, historically, the first network for the sale of infant milk in Reunion. Is this still the case ?
With 250 pharmacies in the region, the pharmacy plays a local role in Reunion, that she perhaps has less in mainland France. The pharmacy is the circuit of first choices, the one where parents receive advice on different infant formulas, as well as the management of benign disorders such as physiological rejections. Once Baby has found the formula that suits him, parents can find their standard infant milk on the shelves of supermarkets or in their pharmacies. These two circuits are complementary.
a product exclusive to Overseas
Laboratoire Gallia powdered infant milk has the reputation of a reference product in Reunion Island. Is there also a “star” product at Blédina? ?
It is without a doubt Blédilait Croissance in small 250 ml bottles, sold in packs of 18 ! This product, exclusive to Overseas Territories, is particularly popular with the people of Reunion Island.. It is the first reference of the department in volume as well as in value. Its practical format, ready to consume, is very appreciated by parents for children aged one to three years.
Beyond regulations, how are your brands moving towards sustainable development ?
The companies Blédina and Nutricia are certified B Corp. This independent certification, renewed every three years, assesses social commitments, internal to the company, and on the environmental level. A lot of work is being done to develop recycled and recyclable packaging and reduce the use of plastics.. We set ourselves, at Danone, the objective of achieving carbon neutrality for all of our activities in 2030. We aim for 100% of our packaging to be reusable, recyclable or compostable by 2025. Another area in which Danone is very committed is that of regenerative agriculture.. The latter designates a set of agricultural practices aimed at soil protection., animal welfare, and support for farmers. With the ambition that 100% of our agricultural raw materials grown in France come from regenerative agriculture by 2025.
In 2020, Danone was the first publicly traded company to become a Mission Company. Is this vision of the company still relevant after the change in Danone's management last year? ?
The dual social and economic project has been a reality at Danone for a long time. 50 years ago already, Antoine Riboud, founder of Danone, delivered an innovative speech in Marseille inviting leaders to take on a social role, societal and environmental. “There is only one earth. We only live once. Economic Growth, the market economy has transformed, disrupted the standard of living in the Western world. It is indisputable. But the result is far from perfect. » In 2017 Danone unveiled a new logo and its very first corporate tagline, « One Planet. One Health ». It reflects Danone's vision that human health is inseparable from that of the planet.. It’s a call to all consumers and industry players to join the food revolution, a movement aimed at promoting healthier and more sustainable consumption habits. Since, Nutricia became the first medical company to be B Corp certified and Blédina the largest French company to also become so.. Today, all Danone entities in France are B Corp certified. These values are carried by all of our teams and we are very proud of them !
*IPSOS, The meeting, PDM Volume – TOTAL AIE (FOOD + LAIT CAM T4 2014 vs 2021)
