Summary
- Danone is using format innovation to extend core brands beyond their original categories, moving from refrigerated dairy into ambient and centre‑store formats to unlock new consumption occasions.
- Category expansion is central for the company, which has moved into adjacent spaces such as RTD protein beverages, plant‑based protein and meal replacements.
- The approach prioritises scalability across formats and channels to unlock growth in fast‑growing categories while maintaining continuity in established ones.
Danone’s high-protein portfolio remains its biggest revenue driver – and keeping the flywheel in motion means finding new niches to expand into while maintaining momentum at the core.
That’s why about a year ago, Danone expanded its billion-dollar brand Oikos into the lucrative ambient shakes space. It was a strategic move designed to target several market trends at once – demand for RTD protein beverages; brand expansion outside the refrigerated aisles, and access to consumers who prefer shelf-stable food and drink.
Commercially, the opportunity was compelling – ambient protein shakes is a $7bn+ category that’s growing in double digits and attracting a consumer profile that fits Oikos’ target demographic and brand ethos. In beverage, Danone positions Oikos as suitable for on‑the‑go and functional consumption occasions, alongside meal‑replacement style products, in which it has also recently scaled its presence through both innovation and M&A.
A year since the launch of Oikos Protein Shakes, Danone is sticking with the product. Rafael Acevedo, President / GM Dairy Yogurt, Protein Shakes, Kids Nutrition, at Danone US, said distribution and penetration have scaled steadily, supported by strong trial and consistently high velocity across retailers.
“That combination tells us the product is not only attracting attention, but earning repeat, which is a critical indicator of long-term relevance in this space,” he said.
Moving into this format has also expanded Oikos’ reach beyond traditional yogurt consumers, he added.
“RTD shakes allows the brand to show up in on the go occasions throughout the day, in moments where refrigerated yogurt doesn’t naturally play. As a result, we’re increasingly reaching consumers who may not be frequent yogurt buyers but are active participants in the broader protein category, reinforcing Oikos’ role as a scalable growth platform within Danone’s portfolio.”
Creating an ambient protein shake also tested Danone’s R&D team, as delivering nutritional benefits without refrigeration requires a different set of formulation challenges.
In the US, Danone’s Oikos brand exceeded €1 billion in revenue in 2025.
“We are consistently challenging ourselves to refine protein quality, taste, and texture across categories, from dairy to plant-based, and Oikos Protein Shakes is one example of how we brought this leading technology to center aisle,” said Susan Zaripheh, chief research and innovation officer at Danone US & Canada. “As part of our continued R&D processes, we are listening to consumers on what they want and are utilising scientific evidence to deliver on their nutritional needs.”
The company is also pooling resources into growing its plan-based protein range, notably through the release of Silk Protein at the end of 2025. Silk Protein packs the highest protein content of any refrigerated plant-based milk in the US according to Danone and thus fills a key market niche.
“While protein remains one of the most sought-after nutrients among consumers over recent years, there is a clear gap in plant-based protein options with plant-based protein only accounting for only one third (33%) of American’s total estimated protein intake,” said Zaripheh.
Protein’s grip on consumers holds
All this innovation activity is backed by the continuing strength in protein demand. According to 2026 data prepared for Danone by The Hartman Group, protein remains the number-one nutrient consumers are intentionally adding to their diet, with 35% of Americans increasing their protein intake in the past year.
“Spurred by the rise of GLP-1 usage, there’s growing recognition that proteins are essential for overall health and muscle maintenance at every stage of life and across all lifestyles,” Zaripheh said.
But the consumer conversation is shifting – from grams of protein to quality of protein and frequency of consumption.
“Protein quality varies by source due to differences in digestibility and the amino acid combination,” Zaripheh said. “Motivated by the GLP-1 movement, consumers are looking for more nutrition in smaller, one-the-go formats and relearning how to select protein-rich foods based on their unique needs.”
To that end, Danone is focusing on functional innovation that pairs protein with fibre, low sugar, and vitamins and minerals to support health holistically.
Demand is also shifting based on life stages and occasions – with muscle health, satiety and everyday nutrition all influencing product innovation in distinct ways.
“We’ve seen protein evolve as a priority for athletes and dietitians to a consideration of the everyday shopper, newly-informed and empowered to make healthier food choices across life stages,” Zaripheh said. “This is one reason why protein has surfaced across the grocery store – particularly into breakfast, snacking and on-the-go products, evolving the daily cadence of protein intake away from mealtime.”
Playing in categories that span both refrigerated and centre‑store formats is therefore central to Danone’s protein strategy, alongside continued expansion into adjacent niches such as plant‑based and meal replacements.
Meal replacements: A new frontier in protein innovation for Danone
Since the start of 2026, Danone began expanding into meal replacements, first through the release of Alpro Meal To Go in Europe, and then by snatching category major Huel in a deal valued at €1.2bn.
The M&A earned Danone a fast‑growing, omnichannel brand with strong protein credentials, ambient shelf positioning, and a global reach.
“It increases our exposure to fast-growing markets, both in Europe and in the US, and so it will enhance our growth profile in both regions,” CFO Jurgen Essert told investors in the company’s first-quarter update last week. “Out of home continues to grow faster than sales in retail channels. (...) This is also due to the fact that all our innovations we are launching are eligible for out of home consumption. This is also where Huel is extremely interesting, because it comes with, again, this ambient product format.
“Because it’s a fast-growing business, it [has] very nice gross margins. We make sure that we are pushing this opportunity to the max, leveraging the totality of their product portfolio, as they have a variety of product formats.”
