Dannon Extends Functional Foods Line

Dannon Co. will launch three functional food items this year to build on the success of its first probiotic product, Activia.

Dannon plans national debuts for DanActive dairy drink and Activia Light yogurt, as well as a reformulation and relaunch of its kids’ yogurt brand, Danimals, to add the probiotic culture Lactobacillus GG (LGG). All three will get heavy TV support, sampling, and a dedicated Web site.

Sales of Activia, whose probiotic live cultures are said to improve digestive tract function, topped $128 million in its first year, Dannon said. That success lays the foundation for more products with live cultures that improve intestinal health.

DanActive launches nationally this month, positioned as a boost for the immune system. The brand migrates to the U.S. from Europe, where it first bowed in 1994. At the same time, Activia Light extends the Activia brand with a fat-free, low-calorie version of the flagship brand.

Meanwhile, Danimals kid yogurt and yogurt-based drinks relaunch this month with LGG and a new recipe that eliminates high fructose corn syrup and artificial coloring and flavoring. A new formulation for Danimals Cups yogurt rolls out in the spring.

The strategy there was to demonstrate Activia’s good taste at the same time that ads and a dedicated Web site, Activia.com, touted its health benefits. That site, with details on the scientific evidence of Activia’s health claims, has drawn a much broader consumer audience than Dannon expected. The site was intended primarily for healthcare professionals.

Young & Rubicam, New York, handles advertising for all the brands. Tribal DDB, also New York, handles the Web sites.

Dannon is the No. 2 player in the $3.2 billion yogurt category, with a 29% share (behind Yoplait’s 35% share), according to Information Resources, Inc. Last year Dannon’s sales neared $935 million in food, drug and mass stores (excluding Wal-Mart), up 5.5% from 2005, IRI said. Danimals sales fell 2% to just under $99 million, IRI reports.