Q&A: How Gut Microbiome Research And Grants Guide Danone’s Innovation

Yogurt has long been viewed as a staple of healthy diets, but it’s just part of a growing conversation around the gut microbiome – and one in which relevant CPG players are hoping to have a bigger part. Last month, Danone announced a set of grants to two researchers – Madison Adamthwaite of Harvard University and Nam Than of The University of Texas at Austin – who are working to evolve general understandings of the “Gut Microbiome, Yogurt and Probiotics.” While the company said the research will contribute to meaningful scientific discoveries, fruit born from these grants will also help drive Danone’s growth onward – on both the business and innovation ends.

We recently chatted with Dr. Miguel Freitas, VP of Health and Scientific Affairs North America, to learn what value the global food and beverage conglomerate sees in funding first party research and how it determines when to lock down proprietary IP, when to share and when to put those findings to work. This interview has been ended for clarity and length.

What value does Danone see in supporting gut microbiome research?

Research continues to suggest that the impact of the gut microbiome is incredibly far-reaching, spanning everything from benefits to our digestive and immune system to supporting the health of the reproductive tract, oral cavity, lungs, skin and gut-brain axis. Newer studies even suggest certain probiotics could help improve mental well-being, cognitive health and sleep quality, though more research is needed before any definitive connections can be made. That is why investments to better understand this unique ecosystem are so important, especially within the context of Danone’s mission to bring health through food to as many people as possible. The more we can learn about the human microbiome, the more we can leverage this research to help people achieve better overall health.

Have any prior fellowships or research grants informed a product or formulation brought to market by Danone?

At Danone, nutrition research is of the utmost importance and informs a large part of what we do, so we work closely with third-party research organizations to glean insights that inform our innovation strategy and pipeline. As the gut microbiome is a significant focus area for us, much of this support is aimed at advancing research in that area. Two of our most recent grant recipients, for example, are conducting potentially groundbreaking research through Harvard University and The University of Texas at Austin that could help us uncover novel probiotics and understand how they play a role in maintaining gut homeostasis or even preventing certain diseases.

What functional food-related trends is Danone currently prioritizing within its innovation strategy?

Over the last few years, we’ve seen consumers re-focus on their health and lean into functional food-related trends including lower sugar, increased protein, gut health and plant-based foods. At Danone, we are innovating to meet the needs of this more health-conscious consumer by looking for ways to reduce sugar across the board, offering products like Oikos Pro high protein yogurt, investing in gut health-related research, and launching even more plant-based products that better match the nutrient profile of traditional dairy foods.

Are there any areas within the gut health-supporting segment that the company views as strong growth drivers?

In addition to identifying novel probiotics that provide specific health benefits as the desire for more personalized nutrition grows, we are also prioritizing and innovating around prebiotic fiber. Prebiotics are the fuel that good bacteria need to thrive, and you will find them in Danone products including Activia Fiber and Horizon Growing Years.

How heavily do food trends come into play within Danone’s innovation strategy?

Following and leveraging the latest food trends is a key piece of our innovation strategy. Not only do we partner with leading market research agencies around the world to keep a pulse on what matters to consumers and what they’re looking for in terms of foods and beverages, we also do proprietary research of our own to uncover additional insights around consumer demand.

One example of an area we look at extensively is social media. As we all know, social media has become a major source of health information in recent years, making it a treasure trove of consumer insights in the food and beverage space. We analyze global social media conversations to find out what consumers are talking about, what ingredients are trending and how we can better serve the modern consumer.

The company’s 2022 Impact Report spoke of Danone’s commitment to supporting nutrition for all, including medical patients specifically. Have new scientific findings ever disrupted or caused Danone to change course on its growth strategy?

As food and health are intricately related, part of dialing in to what consumers are asking for and interested in is knowing more about the physical and mental health concerns that are top of mind for them. So, in addition to tracking what ingredients, flavors and formats consumers are craving, we also track what health conditions are most often impacting them at a population level so that we can innovate in ways that better meet their needs and support their goals.

One example is the increased focus on gut health, a trend that Danone jumped on early with the introduction of our probiotic yogurt Activia to the U.S. in 2006. We responded to this consumer desire long before the trend became the massive focus that it is now and continue to innovate in this area to answer and adapt to evolving consumer needs.

How much IP from research, if found, is proprietary? Is developing IP within certain food segments a part of the company’s growth model?

Like it does for other companies that prioritize research and innovation, IP takes many forms and much of it is proprietary as it helps us stay ahead of the curve. There is a tremendous amount of value in this as it ultimately supports our future growth model and propels the business forward. That said, we do share some of our research to help propel the entire category forward, as well, and ensure that consumers have access to a wide variety of nutrient-dense, health-supporting foods. For example, in 2019 we celebrated 100 years since the creation of our first yogurt by making our collection of 1,800 bacterial strains available for researchers around the world. Actions like this one demonstrate our commitment to promoting open science and contributing to the ongoing food revolution.