Danone: Strong Tailwinds
With a portfolio of well-known water brands and strong distribution, we expect Danone to be in a great position to profit.
The company also has growth opportunities from the infant nutrition market.
Last year in the United States, for the first time on record, sales of bottled water beat out sugar-laden sodas.
Another market which is emerging as a mass-consumer of bottled water is of course China.
During this time the country has doubled its share of global consumption, and in 2013 overtook the US as the biggest market of bottled water by volume.
It’s not just bottled water that we expect to grow strongly in the country.
The $46 billion global infant nutrition market is expected to grow by a CAGR of 8% through to 2020, with the Asia-Pacific region expected to command a 48% share of the market.
When using the company’s OTCQX-listed shares, our target price would translate to being $15.15.
Because of this we think that now would be a great time to make an investment in the space.
I have no business relationship with any company whose stock is mentioned in this article.