1. Inclusive Social Innovation in Action
Fighting Child Malnutrition in Poland
Przemek Pohrybieniuk
Danone Poland & Partnership for Health
Finpro & Aalto University, Helsinki, 20 April 2012

2. Per cent of
children
living below
national
poverty
lines
OECD Child Poverty
League, 2011

3. EU’s POOREST REGIONS + Poland heading

4. Polish children
are the poorest in The poorest
EU region of Poland -
Newsweek, 07.02.2010 łódzkie
Gazeta Wyborcza,
24.02.2010
For many Poles
meat is luxury
Nowa Trybuna Opolska,
20.01.2010
80 mln EU citizens live
in poverty, every 5th
Pole cannot afford An increasing
daily spend number of children
Nowa Trybuna Opolska,
live in poverty, Głos
Nauczycielski, 06.01.2010
20.01.2010

5. BOP consumers in Poland

6. Not every Child in Poland starts a day with breakfast …
• children aged 6 – 11 do not eat breakfast
24% every day during the week 1
• primary school children suffer from
134k undernutrition
• school classes consist of children not
Almost 40% consuming the second breakfast 2
• primary school children are not eating
220k properly enough for their development ²
27% • mothers claim breakfast to be a snack only
3
1. IQS "Share of Stomach" research, Dec 2009 for Danone.
2. Źródło: Aprli 2011, Millward Brown 2009. Research in 300 primary schools in Poland, conducted by Danone and Federation od Polish Food Banks
3. TNS OBOP Research. 7-8.2011 for Danone
6

7. Almost 8 mio Poles (21%) still are from BOP
Income Per EQU / € per EQU DAILY % HHs % Population
monthly in PLN
2400 PLN + 23€ 14% 10%
1600-2399 PLN 15€ 28% 25%
The lowest
800-1599 PLN 10€ 43% 44% income group
among
households is
the so-called „D”
0-799 PLN 5€ 15% 21% group – which
amounts to 21%
of all
households in
EQU Pyramid Income Poland.
Source: GfK HH Panel, Income Pyramid analysis, 2011 data (full year)

8. What is our dream?
Vision:
Poland without child malnutrition & resulting exclusion
problems
Mission:
To ensure that low income families and children from
underprivileged social backgrounds have access to
affordable, high quality, enjoyable nutritional dairy
products.
Ambition
Reduce number of children suffering
from malnutrition by half (from 2009) in 2015
Sales & Servings per day
distributed
to „D” income group

9. Social Business project
to tackle malnutrition
Vision & mission
based on
values
PROVIDING.
CHEAPLY.
PROFITABLY.

10. We got inspired…

11. Shifting private sector thinking about the poor:
the Danone Poland approach
„ ... Traditionally multinationals have focused their attention on the needs
of the affluent consumers of the developed world or at most the
aspiring middle classes in the developing world. But many examples
and other evidence points to an increasing opportunity for forward thinking
organizations to build interesting new businesses by focusing on the needs
of people with the lowest incomes.
/.../
The Bottom of the Pyramid thinking redefines the traditional
concept of who is a customer & who is not. To be able to capitalize on
the opportunities at the bottom of the pyramid we need to develop a wider
socially inclusive view of who our customers are in line with our concept of
Danone as creating both social and economic value.
/.../
Bottom of the pyramid social innovation challenges many of the
orthodoxies and conventions of our current way of thinking. The very fact
that we consider poor people as consumers challenges a convention that
low income people are not interesting.
/.../
Rather than just leaving the poor to the interests of government
and NGO social nets the evidence is that partnerships with social
sector organizations can create social and economic value.
/.../
Much of the success of projects in this area is about real insight
into the societies, cultures and lifestyles of different communities
...”
Ramin Khabirpour,
GM Danone Poland
September 2002, Evian
11

12. Mleczny Start „on the road” to reduce child malnutrition
Poland without child malnutrition
& resulting exclusion problems
1. Make the public aware of the
significance of the problem and
its social consequences
2. Educate the society about the
rules of healthy nutrition
3. Provide specific solutions based
on the Partners expertise &
experience to facilitate
elimination of the most important
bariers to healthy nutrition
Reduce no of children suffering
from malnutrion by two in 2015
Mleczny Start provide low income
families and children from
underprivileged social
backgrounds, an access to
affordable, high quality, enjoyable
nutritional dairy products, for their
children
A. Mleczny Start tons sold
B. Servings per day distributed
to „D” income group

13. Mleczny Start „on the road” to reduce child malnutrition
Poland without child malnutrition
& resulting exclusion problems
1. Make the public aware of the
significance of the problem and
its social consequences
2. Educate the society about the
rules of healthy nutrition
3. Provide specific solutions based
on the Partners expertise &
experience to facilitate
elimination of the most important
bariers to healthy nutrition
Reduce no of children suffering
from malnutrion by two in 2015
Mleczny Start provide low income
families and children from
underprivileged social
backgrounds, an access to
affordable, high quality, enjoyable
nutritional dairy products, for their
children
A. Mleczny Start tons sold
B. Servings per day distributed
to „D” income group

14. Mleczny Start is a result of works of an unusual Partnership
acting as a unique social innovation framework…
The Partnership for Health is a joint initiative of three companies: Danone,
Biedronka, Lubella and a research/medical institution
(Institute of Mother and Child) who cooperate
to effectively counteract the problem of malnutrition among children in Poland
& its dramatic health and social consequences.
14

15. The project is developed in a Partnership, where all partners
agree to follow social business principles
Based on unique business principles – business as unusual:
o Lowest possible price with the highest nutritional quality
o Minimum margins & open P&L statement
o Outside annual nego or of any "usual" parameters
o Exclusivity within Biedronka with full distribution in all outlets
o Joint community & educational activities
o Shared "PR" activities for the whole time

16. All Partners contributing their competencies & resources
• Owner of the concept • Nutritional profile /product formulas
• Fuels cooperation • Expert opinion & advice on
• Business / marketing/ nourishment standards
comms
• Distribution & sales
• Production know-how • In-store execution
• Production

17. Launch 2006
17

18. Mleczny Start „on the road” to reduce child malnutrition
Poland without child malnutrition
& resulting exclusion problems
1. Make the public aware of the
significance of the problem and
its social consequences
2. Educate the society about the
rules of healthy nutrition
3. Provide specific solutions based
on the Partners expertise &
experience to facilitate
elimination of the most important
bariers to healthy nutrition
Reduce number of children
suffering from malnutriton by half
in 2015
Mleczny Start provide low income
families and children from
underprivileged social
backgrounds, an access to
affordable, high quality, enjoyable
nutritional dairy products, for their
children
A. Mleczny Start tons sold
B. Servings per day distributed
to „D” income group

19. Mleczny Start „on the road” to reduce child malnutrition
Poland without child malnutrition
& resulting exclusion problems
1. Make the public aware of the
significance of the problem and
its social consequences
2. Educate the society about the
rules of healthy nutrition
3. Provide specific solutions based
on the Partners expertise &
experience to facilitate
elimination of the most important
bariers to healthy nutrition
Reduce number of children
suffering from malnutriton by half
in 2015
Mleczny Start provides low income
families and children from
underprivileged social
backgrounds, an access to
affordable, high quality, enjoyable
nutritional dairy products, for their
children
A. Mleczny Start tons sold
B. Servings per day distributed
to „D” income group

20. Affordable, high quality, enjoyable nutritional dairy product

21. Solid & nutritious breakfast for kids,
fortified with vitamins & minerals
crucial to child development
• Nutrition:
• Covers 25% daily
recommended
intake for vitamins & minerals
• Consumption target:
• kids 6-11 yo. from low
income families
• Effort level:
• 11% at the launching phase
4.6% currently
• Price: 0,18 €

23. Mainline
24

24. Mleczny Start „on the road” to reduce child malnutrition
Poland without child malnutrition
& resulting exclusion problems
1. Make the public aware of the
significance of the problem and
its social consequences
2. Educate the society about the
rules of healthy nutrition
3. Provide specific solutions based
on the Partners expertise &
experience to facilitate
elimination of the most important
bariers to healthy nutrition
Reduce number of children
suffering from malnutrtion by half
in 2015
Mleczny Start provides low income
families and children from
underprivileged social
backgrounds, an access to
affordable, high quality, enjoyable
nutritional dairy products, for their
children
A. Mleczny Start tons sold
B. Servings per day distributed
to „D” income group

25. Mleczny Start „on the road” to reduce child malnutrition
A. SALES

26. Sales results (in T) in 2011: +42 vs. 2010
1 621
1 135
389 +42%
368
+177%
+11%
2008 2009 2010 2011

27. „2nd breakfast on the go” Milky Start cereal
breakfast
• Very positive nutritious opinion due to high
content of cereals and fiber
• Co-creation of product concept with
– IMID
– Kids
• Sandwich shape & name – to minimize
relation with cereal bars or sweets
• Same pricing as semolina;
• 0.69 PLN (40g)

28. MONTHLY SALES BY FORMATS (TONS)
Jan & Feb-Mar
Jan – Mar Apr– May Aug-Nov 1st wk Aug-Sep
Mar
250 2010 2011 2012
TONS
200
150
4+1
GRATIS
4+1 4+1 4+1
100 GRATIS
GRATIS
GRATIS
50
0
60g monthly (t) 4+1 Stand 2010 3+1 (240G)
MIX 60g strawberry test caramel (60G) 300g monthly (t)
2011 60g green apple 60g chocl&nuts Sandwich
2012
SOURCE: INTERNAL DATA JMD MAR 2012

29. 65 000 000
breakfast portions
in
5 years

30. 80 000
portions sold a day!

31. Mleczny Start „on the road” to reduce child malnutrition
B. SERVINGS

32. 27 % = 22 000 portions
to D households daily!

33. 27% of volume
goes to D Households
45%
56%
66%
20% 27%
7%
2008 2009 2010

34. SEMOLINA & CEREAL SANDWICH SERVINGS SOLD PER DAY
(MONTHLY AVERAGE)
Servings
150,000
% of MS VOL. PLN/CAPITA
DISTR. TO „D” MONTH
INCOME GROUP
125,000 2008: 16% 0 - 599
2009: 20% 0 - 799
100,000 2010: 27% 0 - 799
75,000
50,000
27%
25,000 20% =14 675
=3 734 no
servings to „D” income group data yet
,0
Mar
Oct
Oct
Oct
Oct
Oct
Oct
Feb
Feb
Feb
Feb
June
Jun
Aug
Jun
Aug
Feb
Jun
Aug
Jun
Aug
Aug
Feb
Apr
Apr
Avr
Apr
Apr
Dec
Dec
Dec
Dec
Dec
Dec
2006 2007 2008 2009 2010 2011 2012
SOURCE: INTERNAL DATA JMD MAR 2012
GFK income pyramids – new coverage

35. Mleczny Start „on the road” to reduce child malnutrition
REALISATION

36. Ambition:
Contribute to reduce child malnutrition by half (till 2015) via
providing Milky Start to children from low income HH
80 000 180,000
170 000 70 264 170,000
70 000
160,000
60 000
150,000
50 000
140,000
40 000 130,000
120,000
30 000
99 736
110,000
20 000
100,000
10 000
90,000
981
0 80,000
2006 2007 2008 2009 2010 F 2011 2012 2013 2014 2015
# servings per day sold to low-income HH
Children suffering from malnutrition

37. „Breakfast gives
power”

38. BREAKFAST GIVES POWER & BREAKFAST CLUBS –
SCHOOLS ACTIVATION
Healthy Breakfast Day Class breakfasts as a habit
Nov 8th 12 edu-breakfasts
THE BREAKFAST CLUB
Breakfast gives power Breakfast clubs
• One day, low effort edu-event • Long term, creative education
available for all schools proposal for highly motivated &
• Target: +50% vs 2011 (3600 engaged teachers
schools) • Target: 1000 schools

39. Key Success Factors
Dedication and resilience
Leader makes its continuous mark
People fill jump in
New ways of working -> Partnerships
…require humbleness & patience
Co-Creation is a painful process
Beware of idealism and do-gooding
- Price per pack is key for the BOP
- A well designed TV ad can boost success
- In-store operations are powerful
Malnutrition impact measurement
requires specific approach and tools to assess growth and
cognitive child development

40. VISION: POLAND WITHOUT CHILD
MALNUTRITION
COOPERATION TO COUNTERACT
CHILD MALNUTRITION
SINCE SINCE
2006 2011
?