Grameen Danone July07 (Nx Power Lite)


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  • Grameen Danone July07 (Nx Power Lite)

    1. 1. GRAMEEN DANONE FOODS LTD. A Social Business Enterprise A unique “community” model
    2. 2. Total population: 144 million - 80% rural 41% aged below 14 Average family size: 4.9 GDP / cap : 600$ a year (Indon.: 1,200$) Density 1000 p. / km² Sources : 2004 statistical yearbook of Bangladesh, 2005 estimates on total population, household income per day € 2.9-4.1 a day (233-333Tk) <€1 a day (<83Tk) € 2-2.9 a day (167-232Tk) Country background: population pyramid Grameen Danone Project 11% >€4.1 a day (>333Tk) 16% 22% 14% 37% € 1-2 a day (83-166Tk)
    3. 3. Key health/nutrition concerns in Bangladesh Source: Grameen/local NGOs <ul><li>Micro Nutrition Issues </li></ul><ul><li>Iron (49% among young children) </li></ul><ul><li>Vitamin B2 </li></ul><ul><li>Calcium </li></ul><ul><li>Vitamin C </li></ul><ul><li>Vitamin A </li></ul><ul><li>Iodine and zinc likely </li></ul><ul><li>Health Concerns </li></ul><ul><li>Stunting (41% of young children) </li></ul><ul><li>Diarrhoea </li></ul><ul><li>Polluted water (arsenic, bacteria) </li></ul><ul><li>Macro Nutrition Issues </li></ul><ul><li>87% of protein source is vegetal (lentils and beans), deficiency in essential amino-acids likely </li></ul><ul><li>Overall energy deficiency, particularly among young children (between 24% and 40% gap vs RDA) </li></ul><ul><li>Protein deficiency </li></ul>
    4. 4. Grameen Danone: project objectives Reduce poverty by a unique proximity business model which brings daily healthy nutrition to the poor the mission
    5. 5. 4 objectives <ul><li>Improve living conditions of the poorest in the community by involving them in all stages of the business model </li></ul><ul><li>Profitability to ensure return on capital and sustainability </li></ul><ul><li>Preserve natural resources as much as possible </li></ul><ul><li>Health through nutrition at a very affordable price for all Bangladeshi children </li></ul>
    6. 6. Key contributions Technical expertise and assistance in local regulatory environment, micro-credit financing, agriculture mgt, distribution and consumer education Grameen (50%) Technical expertise in R&D, nutrition, manufacturing, quality, marketing Danone (50%) Technical expertise in fortification, nutrition marketing, efficacy study GAIN
    7. 7. <ul><li>I want my children to be strong and healthy so that they can succeed with their activities today and in the future </li></ul><ul><ul><li>It is sweet and delicious </li></ul></ul><ul><ul><li>made from fresh milk, which brings proteins, calcium and phosphorus </li></ul></ul><ul><ul><li>fortified with 30% daily needs in vitamin A, Zinc, iron, iodine </li></ul></ul><ul><ul><li>contains live ferments which help a good functioning of the intestine </li></ul></ul><ul><li>Available at 5 Tk or 0,06 € </li></ul>Product concept
    8. 8. Community business model : execution <ul><li>Proximity : 25km radius (ie 20km max. rickshaw + 5km max. pedestrian) </li></ul><ul><li>Based on village density, 2,500t min. potential p.a. </li></ul><ul><li>Local milk sourcing : 500 micro-farms, 2000 cows, doubling milk productivity </li></ul><ul><li>Mini plant : deskilled and manualized process to maximize number and type of jobs created </li></ul><ul><li>Sales and distribution : 1,000 to 2,000 Grameen ladies + 700 shops </li></ul>
    9. 9. High speed from idea to launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Preparation (Nov. 29 th 2005 workshop) Immersion and information gathering Concept definition & business plan Product development First implementation, then scale up March 16 th 2006 MOU We are here One year from day 1 of the project to actual launch!
    10. 10. Les producteurs de lait
    11. 11. On entre :
    12. 12. Zoom sur le logo
    13. 13. “ Zidane” plant <ul><li>Mini plant 3,000 tons max. capacity, 1 SKU </li></ul><ul><li>Deep functionality analysis, zero-base design </li></ul><ul><li>Deskilled process enabling job opportunities </li></ul><ul><li>Environment friendly : </li></ul><ul><ul><li>Gas as primary source for energy ; Solar as significant secondary </li></ul></ul><ul><ul><li>Rain water recycling </li></ul></ul><ul><ul><li>Water treatment station </li></ul></ul>
    14. 14. Récupération d’eau de pluie:
    15. 15. Le solaire pour la chaudière:
    16. 16. Récupération du gaz Station d’épuration …
    17. 17. Formation de la force de vente :
    18. 18. Sampling dans les écoles
    19. 19. De l’usine au Centre de Distribution
    20. 20. La chaîne du froid
    21. 21. Les points de vente
    22. 22. Les clients
    23. 23. Proximity and Nutrition marketing
    24. 24. Social impact KPIs Example : GAIN’s efficacy study <ul><li>Objective: </li></ul><ul><ul><li>Evaluate the impact of a fortified vs non-fortified yogurt </li></ul></ul><ul><ul><li>Evaluate the impact of a fortified yogurt vs no regular yogurt consumption at all </li></ul></ul><ul><li>Specifics: </li></ul><ul><ul><li>Evaluate the impact of the fortified yogurt on morbidity, growth, cognitive development and status indicators </li></ul></ul><ul><ul><li>Over periods of 6 months and one year </li></ul></ul><ul><li>Principal investigator: Sunil Sazawal MD, MPH, PhD </li></ul><ul><li>Primary Institution: Johns Hopkins university, USA </li></ul><ul><li>Collaborating Institution: Center for Micronutrient Research, India </li></ul><ul><li>Partnership: GAIN (funding and technical advising) </li></ul>
    25. 25. 10-year dream <ul><li>100 MM€ sales, pay-back on capex on a 3-5 year period, requiring constant model reengineering (pack, size, prices) </li></ul><ul><li>20-25% pop. weekly penetration </li></ul><ul><li>30 to 50 plants covering half of 62,000 villages </li></ul><ul><li>50 to 100,000 sales and distribution jobs created. </li></ul><ul><li>25,000 farm jobs created </li></ul><ul><li>Replicated in most rural areas (co-owned basis) </li></ul>