danone.communities: How does it work?

The Board of Directors danone.communities is composed of 12 members: personalities and pioneers in the development actors. History, personal commitment or professional background of those who motivate their involvement and contribution to the project danone.communities. Their knowledge or interest in the problems of developing countries, their experience with communities and their diverse geographical origins make this collaboration a real force for the project. All are convinced that there is now a real place in the economy to the "social business". 

Investment projects are initiated and reviewed by our Social Innovation Committee. Led by Danone, the Committee is made up of Danone representatives and independent members with recognized expertise in socially responsible investment and emerging economies.

The Committee reviews, analyzes and selects social business projects, then refers them to our Orientation Committee, the majority of whose members are independent from Danone.

Danone plays an active role in danone.communities in several ways:

The group has invested €20 million in the fund, which has a target value of €100 million. Danone thus owns neither the fund nor any of its projects, and the fund itself holds only a minority share in each project.

Danone contributes expertise in dairy farming and technology, water, and child and adult nutrition. To put this to work, it seconds group employees with the necessary know how to assist the fund’s partners and their projects, from product design to industrial processes, from the supply chain to marketing and sales.

Danone also supports social entrepreneurs with a team of world-class specialists from a variety of areas. These include NGOs, microcredit banks, private entities, universities, and other institutions of higher learning -- wherever talented people are willing to use their skills to fight poverty.

Danone is not just the initiator of danone.communities and a main investor in the fund: it also provides continuing support for our development by :

-          undertaking to cover all the fund's operating expenses each year

-          contributing Danone resources and expertise.

Surveys, studies, guidance and on-site technical support provided by the group help keep our social business projects viable, and dozen Danone staff members contribute expertise in finance, sales and marketing, R&D and project management.

Innovative as it may be, danone.communities is still a mutual fund (SICAV) open to all, providing opportunities to invest in businesses that create economic and social value at grassroots level. By offering you new investment options, we join with you in creating more possibilities for social progress.

Why did we choose the investment fund option?

Because it can attract investors in large numbers:

> with at least 90% of assets placed in low-risk fixed-income securities (money and/or bond markets)

> with at most 10% placed in an FCPR venture-capital fund, which finances social business projects.

In short, the danone.communities fund is an investment vehicle in its own right, with the special human touch that comes from social commitment.

Learn more

If you have plans for a social business or are already a social entrepreneur, you can apply to danone.communities for consideration as an investment target. Applications are judged on three criteria: convergence, potential and efficacy.

> Convergence

•             danone.communities considers projects that improve health and living conditions for poor communities with a measurable social impact. They must be aligned with Danone's mission of bringing health through food to as many people as possible.
•             Danone must be able to contribute expertise and experience, in particular by seconding managers or technicians to projects as needed.
•             Danone.communities supports social entrepreneurs while remaining a minority shareholder. New projects must offer a good fit with existing danone.communities partnerships.

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