Danone warns on emerging markets

French food group sees signs of a slowdown in key emerging markets it previously viewed as growth drivers, and is braced for a subdued 2009.

 The maker of Evian bottled water and
Actimel yoghurt said it will focus on winning market share and plans
to grow faster than the market next year, helped by blockbuster
brands and selective investment in new countries and products. Danone
said it still expects 8-10 percent like-for-like sales growth and an
improvement in its operating margin over the medium term.

Danone generated 63 percent of its
sales in Europe in the first nine months of the year and 12 percent
in Asia. Its businesses include fresh dairy products, waters, baby
food and medical nutrition. Dairy contributed 57 percent.

The company has weathered a 40 percent
increase in the cost of milk powder in the last two years.