GRAMEEN DANONE FOOD Ltd Social innovation to bring nutrition to the poor in Bangladesh & to valorize and professionalize local populations

Our Business model in Bangladesh This model relies on a yoghurt called Shokti Doi, specifically designed to bring health at affordable price to poor populations in Bangladesh. Each cup of ShoktiDoi brings (~ 12.5% of RDA in) Calcium and is fortified with 30% of RDA in Zinc, Iron, Vitamin A and Iodine, micronutrients which local population lacks. Each cup is sold at 6tk per cup, ie around 6 cents of Euros, only. Today we sell about 100.000 cups / month. This yoghourt is made in a simplified micro- factory that is 100 times smaller than a normal dairy factory. Yearly capacity of this micro plant is 3000 Tons. This factory is settled in Bogra, 250 km north from Dacca. 50 employees from local villages. It has been designed in an environmental way (collecting rain water, partially working with solar energy) Simplified equipment to use manpower but still same quality standards as Danone Run by Bangladeshi Autonomous but networked, to be able to replicate to 50 factories Using milk of 60 local farmers. Milk is bought from local supply. Average Bangladeshi farmer has 2 cows producing 2Liters / day (compared to 40 Liters / day in Europe). Factory helps improve productivity of cows and improve quality of milk, buys the milk at good price and helps increase income of these farmers. Number of farmers : 60. Product is delivered in 30 to 50 km radius around factory, through ecological vehicles, mainly rickshaw vans. Distribution is through small urban shops but also through sales ladies. 30 ladies today. (Sales ladies network has reached 300 ladies.) This women have one day credit on the sales, reimburse products and get an income from the margin. They are often Grameen borrowers.

A Social Business model with 5 objectives Health through nutrition at a very affordable price for all Bangladeshi children Improve living conditions of the poorest in the community by involving them in all stages of the business model Preserve natural resources as much as possible Profitability to ensure return on capital and sustainability 1/ Impact on health will be measured by GAIN. (The NGO is even financing the 400 000 USD of this efficiency study.) 2/ The same local community is supplying milk, producing and distributing through the ladies to its own children. We are at early stage but probably 150 people live from and grow from this business. 3/ Eco-designed factory 4/ Losing money today – small profit at full capacity to be reached in 3 years 5/ we always fear we cannot alleviate poverty, but here if we show we are sustainable at micro scale, then we will be able to replicate at macro scale and this will create significant social impact. Micro / proximity business model to ensure ownership and learning by local population, and macro replication With networked autonomy

Bangladesh background: population pyramid Total population: 144 million - 80% rural 41% aged below 14 Average family size: 4.9 GDP / cap : 600$ a year (Indon.: 1,200$) Density 1000 p. / km² >€4.1 a day (>333Tk) 14% €2.9-4.1 a day (233-333Tk) 11% €2-2.9 a day (167-232Tk) 16% €1-2 a day (83-166Tk) Grameen Danone Project AS:The Bangladesh population is a “heavy base” pyramid with almost 60% living on less than 2 Euro per day per household. 37% <€1 a day (<83Tk) 22% Sources : 2004 statistical yearbook of Bangladesh, 2005 estimates on total population, household income per day

Key health/nutrition concerns in Bangladesh Health Concerns Stunting (41% of young children) Diarrhea Polluted water (arsenic, bacteria) Macro Nutrition Issues 87% of protein source is vegetal (lentils and beans), deficiency in essential amino-acids likely Overall energy deficiency, particularly among young children (between 24% and 40% gap vs RDA) Protein deficiency Micro Nutrition Issues Iron (49% among young children) Vitamin B2 Calcium Vitamin C Vitamin A Iodine and zinc likely AS: There are major health issues – both macro and micro. On the macro front – there is a high level of energy deficiency that varies between 24 and 40% based on the age of the kids (highest for 1 to 3 year olds). Also deficiencies in the area of protein with most protein being from vegetal sources (20-30% protein deficiency for kids). On the micro nutrition front…. In terms of health concerns – stunting (resulting from energy and protein deficiency) is a major problem as is diarrhea (leading cause of death after respiratory illnesses) 20 million kids die of diarrhoea every year. Source: Grameen/local NGOs

ShoktiDoi, a yoghurt full of nutrition ShoktiDoi has been specifically developed by Danone’s experts in R&D, with technical help of GAIN, to fulfil the nutritional needs of children in Bangladesh and to contribute to their healthy growth by bringing them the benefits of milk, live cultures and other micronutrients they lack. ShoktiDoi contains milk, sugar, date molasse, starch, Zinc, Iron, Vitamin A, Iodine and Danone special blend of yoghurt cultures (Lactobacillus Bulgaricus, Streptococcus Thermophilus). Each 60 g cup of ShoktiDoi brings ~ 12.5% of RDA in Calcium and is fortified with 30% of RDA in Zinc, Iron, Vitamin A and Iodine. ShoktiDoi is produced by Grameen Danone Foods Ltd in a small modern factory in Bogra, built with the Danone know-how on quality and food safety.

Benefits of micronutrients and live cultures

Efficacity study currently on going with Objective : Evaluate the impact of a fortified vs non-fortified yogurt Evaluate the impact of a fortified yogurt vs no regular yogurt consumption at all Specifics : Evaluate the impact of the fortified yogurt on morbidity, growth, cognitive development and status indicators Over periods of 6 months and one year Principal investigator: Sunil Sazawal MD, MPH, PhD Primary Institution: Johns Hopkins university, USA Collaborating Institution: Center for Micronutrient Research, India Partnership: GAIN (funding and technical advising)

A mission: support social businesses such as GDFL bringing health through food to as many people as possible in areas where Danone can concretely add competencies Projects: Grameen-Danone + 3 others projects in incubation phase in Africa and Asia, in Water, Baby-Food and Dairy A Financial tool : French SICAV: to finance those social businesses (10% of 65M€) A Network : Danone, NGOs, suppliers, subscribers, local teams, academics… who want to engage into social business solutions (www.danonecommunities.com)

A network with complementary knowledge 50% Technical expertise & assistance in local regulatory environment, micro-credit financing, agriculture mgt, distribution and consumer education 50% Technical expertise in R&D, nutrition, manufacturing, quality, marketing Technical expertise in fortification, nutrition marketing, efficacy study

Professor Muhammad Yunus about training Video Source : youtube.com

Little stories of empowerment : experience to educate Sales’ladies Autonomous factory danone.communities network Impactful volunteers Sales’ ladies in continuity of the Grameen borrowers Empowered and professionalized Overcome social barriers How a factory reaches its autonomy Guy Gavelle alone first, a doer and a teacher with 30 years of experience A Bangladeshi plant manager (Probir) & a local team Operational autonomy in 3 months Simplified esay-to-operate (and maintain) factory some technicians left the company because they now have valuable skills Networked and therefore able to overcome big challenge - ex : reformulation through R&D from Danone in India Impactful volunteers : young people coming for one year, ex : Rémi Bring competencies & better use of technologies A connecting point with the Danone network, and broader through d.c blog Tomorrow Probir should be autonomous to access the network via virtual share of experience on danone.communities.com danone.communities : create a network able to bring nutrition & alleviate poverty, in which each one founds a way to optimize its work. Aim is to empower and to make local populations develop themselves.

Social Innovation for nutrition Autonomy & Learning 1/ Build a network of complementary knowledge 2/ Experience to educate Thank you for your support!