French food group Danone waits a European ruling on the health benefit claims it makes on two of its best-selling yoghurts Activia and Actimel. The decision expected from the European Food Safety Authority (EFSA) is important for Danone mainly because its strategy focuses on differentiating dairy brands with a "good for you" proposition. If a negative decision appears, this could ultimately force Danone to redesign its  growth model in dairy business, which made up almost 60 percent of the group's sales of around 15 billion euros in 2009.

Danone has two major brands in this context: Activia, a yoghurt that claims to aid digestion, and Actimel, a dairy drink claims to help strengthen the body's immune system, additionally several  baby food or infant formulas are also in this category. These two brands' combined 2009 sales were 3.7 billion euros, and that corresponds to 43% of the sales of the fresh dairy division and 25% of global revenue. Last year,  Activia, Actimel, Danonino and Danacol brands grew faster than the average of the dairy division.

The EFSA is reviewing thousands of health claims for food products in the EU under a 2006 law aimed at ensuring these claims are backed by adequate scientific evidence. Its opinions are then used by the Commission, which makes the final ruling. For Danone, the EFSA review process has not been a smooth road. In April 2009, Danone withdrew its applications regarding Activia and Actimel as there was confusion about what data the EFSA needed. Danone filed new applications covering the two products late last year and early this year. One positive for Danone is that the EFSA last July endorsed its claim that Danacol yoghurt drink helps reduce cholesterol. But last month the EFSA said Danone did not have sufficient evidence to justify its claim that Immunofortis, an ingredient it puts in baby formula products, strengthens a baby's immune system. Danone has yet to re-submit a claim on Immunofortis.

The issue is not such a headache for Europe's two other big food giants Nestle and Unilever as they are not awaiting EFSA approval of health claims on significant products. Although earlier this month, U.S. health regulators warned units of Nestle and over a dozen other foodmakers about overstating or misstating the nutritional value of baby food and other products on their labels. Nestle has a number of products carrying health claims that EFSA has ratified which relate mainly to minerals and vitamins such as in dairy products, while Unilever has EFSA approval for its pro-Activ cholesterol-lowering products.

Compiled from  a story covered by flex-news-food.com