Danone’s Open Innovation: Engaging with the GLP-1 Trend

How is open innovation structured at Danone, the maker of popular brands like Activia, Alpro, Silk, and Evian, and how is it adapting to the emerging GLP-1 trend?

According to the firm’s open innovation manager, Irini Schoeman-Giziakis, it’s still early days in understanding the implications of GLP-1 medications. Danone’s primary focus is on meeting the nutritional needs of those who are taking these drugs, particularly regarding weight management.

Strategizing Product Positioning

In discussing which existing products may appeal to GLP-1 users, Schoeman-Giziakis noted that there are ongoing industry conversations about how to effectively market these products. They are contemplating whether to brand certain items as “GLP-1 friendly” or guide consumers toward them through nutritional guidance and online shopping apps.

A Focus on Consumer Needs

During a recent interview at the US Davis discovery forum on GLP-1s in Sacramento, California, Schoeman-Giziakis elaborated on Danone’s commitment to providing consumers with appropriate dietary options. “As we transition into a world where more individuals utilize GLP-1 medications, our goal is straightforward: to ensure that people maintain a balanced diet without nutritional deficiencies,” she explained.

Innovation Pathways: New vs. Existing Products

She highlighted that discussions are ongoing regarding whether Danone should develop new products tailored specifically for GLP-1 users or reposition its current product offerings to meet the requirements of this audience. “We’re still in the early stages—18 months into our exploration,” she remarked. “Understanding actual consumer needs is paramount.”

Open Innovation Collaboration

When asked about open innovation and its role in product development, Schoeman-Giziakis pointed out that the strategy could go in multiple directions. “If we venture into new product development, that would likely involve open innovation. However, if we believe we have existing products that can meet needs, that might be a different approach,” she noted. “But we can pursue both strategies simultaneously.”

The Importance of Microbiome Health

Schoeman-Giziakis elaborated on Danone’s long-standing commitment to health, stating, “We do not view the rise of GLP-1 drugs as a negative; rather, we see it as an opportunity to enhance our understanding of metabolic health and microbiome diversity.” This perspective aligns seamlessly with Danone’s ongoing missions around gut health and immunity.

Leveraging AI in Nutrition

The conference also delved into how AI can intersect with precision nutrition. Schoeman-Giziakis revealed that Danone is currently utilizing AI to better analyze internal data and expedite processes. “While I can’t share specifics, we are actively exploring how AI can enhance our interactions with consumers,” she shared.

Structuring Open Innovation at Danone

Discussing how open innovation is structured, Schoeman-Giziakis described her role as foundational in linking Danone’s experts with external partners. “I create a platform for interaction, allowing our team to connect with startups and academic institutions,” she said. “We have opted for a lean approach to open innovation, empowering our experts to engage with startups directly.”

Tech Scouting and Partnerships

She explained that tech scouting is applied on a case-by-case basis, usually at the request of in-house experts, and may involve hiring consultative teams. Her approach facilitates internal requests for external collaborations to optimize Danone’s innovation processes.

In terms of partnerships with startups, Schoeman-Giziakis stated, “We have a clear model regarding IP; while we focus on product IP, technology or ingredient IP remains with the startup.” This ensures a mutually beneficial relationship that encourages innovative growth.

Conclusion

As Danone continues to navigate the evolving landscape of the GLP-1 trend, its commitment to health, innovation, and collaboration remains at the forefront. With a strategic approach to open innovation and a keen focus on consumer needs, Danone is well-positioned to support those navigating their dietary choices in this new era.

Further Reading

• 🎥 How does front end innovation work at Givaudan? In conversation with Alexandre Bastos
• 🎥 Food formulation and precision nutrition in the Ozempic era: ‘There’s an entire secondary market that can come from any breakthrough technology’
• 🎥 Collaborate or die: Hacking the next generation of healthy foods at MISTA