Every morning, Nicolas Barré, editorial director of Les
Échos
, takes stock of a current economic issue.
Today, he looks back on the difficulties of agribusiness giant Danone.
The boss of Danone, under pressure from certain shareholders, had to give up operational management.
The French agrifood giant is weakened ...
"Danone is a flagship of French capitalism. Do you remember the turmoil in 2005 when there were rumors of a takeover bid from an American group? Jacques Chirac, then president, mobilized for defending this jewel of our economic heritage. So when Danone, a company popular with young graduates, goes through a crisis, it does not leave you indifferent. What is happening? For some time now, so-called 'activist' shareholders, it is that is to say who know how to pinpoint the weaknesses of companies, criticize the management of Danone and its CEO Emmanuel Faber, who, under pressure, had to agree to share his power. He will keep the presidency but he will cohabit soon with a general manager who will be the boss, or the boss, operational.
What do these activist shareholders blame him for?
They point to the fact that Danone's performance is poorer than that of its competitors such as Nestlé and Unilever.
It's true: last year, Danone's turnover fell slightly, unlike the other two, and its margins are lower.
But the comparison is a bit misleading because they are not quite on the same trades.
Those of Danone, for example mineral water, have suffered more from the Covid-19 crisis.
These minority shareholders have therefore been agitated for some time.
Some even demanded the departure of the CEO.
Others, at a minimum, the separation of the functions of chairman and managing director: a sharing of power which is increasingly widespread.
More than half of the CAC 40 groups have adopted this mode of operation which creates more checks and balances.
This was the case very recently at Bouygues or L'Oréal.
It is also the personality of the boss of Danone that was targeted ...
Yes Emmanuel Faber has the qualities and the faults of a visionary.
In the midst of Covid, this boss of conviction has made Danone a company with a mission, endowed with a 'raison d'être' by which the group is committed to societal objectives and not just to the pure pursuit of profit.
But Emmanuel Faber is also criticized for his solitary exercise of power, not close enough to the field and the realities of each market.
Its mission will now be to find a general manager, the main thing being that the sharing of roles is clear: to one the vision, to the other management.
It is not the easiest.
But the stakes are high: Danone has more than 100,000 employees, 24 billion euros in turnover, a 'cathedral' of French capitalism that leaves no one indifferent. "