Danone 'to expand bottled water brands'

Danone plans to develop its bottled water brands in emerging markets despite calls from analysts to focus on yoghurts and baby foods, reports the Financial Times.

The company, which produces the Evian and Volvic brands, experienced a drop in sales volumes across the developed world over the past couple of years as consumers reacted to the environmental impact of bottled water.

According to the newspaper, Danone's chief executive has said that ensuring volume growth within the bottled water sector fits in with the companies plan to focus on health and functional foods.

In the UK the company produces the Activia and Actimel brands, both of which contain pro biotic ingredients. It is also working on a new product which could help with some of the symptoms of Alzheimer's disease.

Just over half of Danone's bottled water sales are made in emerging markets including Indonesia, Morocco and Argentina.

An earlier report in the FT revealed that the company's strategy would be to focus on volumes rather than sales in the coming months due to the difficulties which still exist in the world wide economic climate.