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as the main product innovation atDanone Eaux France in 2008. Reinventing the concept of flavoredwater, Volvic has overcome the two main obstacles to success:perceived artificiality and sugar content consumers consider toohigh. More natural, with a fruit tang that sets it apart, Volvic Touchede fruit has no artificial flavorings or preservatives, and reducedsugar. These qualities have already won it a place with 1.6 millionFrench households, mostly made up of middle-aged people withno children, looking for a healthy alternative to unflavored stillwater. In 2009, Volvic will be maintaining its focus on natural appealwith the launch of Volvic Touche de fruit with apple and mint/greentea flavors on the French market. In Germany, the apple flavorlaunched in 2008 is a best-seller for the range.Ser 0% powder/a winning conceptMixed with water,powdered Ser yields atasty, sugar-free drinkenriched with nutrientsthat include calcium,magnesium and vitaminsB9 and B12. It waslaunched on theArgentine market in May2007, and has madequick progress, with twomore flavors added tothe range in 2008, raisingthe total to ten. Withreduced packaging, Ser0% powder is just halfthe price of bottledflavored water, costingonly around €0.20 a liter.Another good reason forsuccess.Communication/What do youknow about thewater you drink?This question is thebanner for a campaign indefense of mineral waterlaunched by the industryassociation in France.The move is backed byan internet site (https://leseauxmineralesnaturelles.com) where consumerscan check their knowledge.Example: Mineral water andtap water are equally pure.True or false? False! Mineralwater is legally required tobe pure from the start. Tapwater, in contrast, starts outwith pollutants in higheror lower concentration,requiring treatment tomake it safe to drink. Andtap water is nearly alwayschlorinated.Markets/ saleof FrucorIn keeping with itsstrategy of focusingbeverage business oncore mineral waters andspring-water products,in February 2009, Danonefinalized the sale ofsubsidiary Frucor toprice of over €600million. Frucor is a leaderon the Australian andNew Zealand markets fornon-alcoholic beverages,with nearly all of its salesfrom flavored drinks,sodas and energy drinks.€2.9billionsales in 2008.33,000employeesworldwide.84 plantsworldwide.Volvic and Evian lead the field in GermanyVolvic and Evian reinforced their top places on the German market for still water,with sales up 3% in 2008—a remarkable performance considering the generallylackluster market trends in Europe. The success of Volvic’s range of flavored watersmade an important contribution to this result. The continuing efforts of its salesforce and increased point-of-sale advertising were reflected in a 26% rise in thepresence of the two brands on retailers’ shelves.by 2011”Nobody would deny that the year ahead will be challenging,but wringing our hands won’t get us anywhere. In this kind ofsituation, what counts is attitude, courage, and commitment.INTERVIEW/ FRANCK RIBOUDFOR MORE INFORMATION:Danone — 15 rue du Helder, 75439 Paris Cedex 09. Visitors: 17 boulevard Haussmann, 75009 Paris, tel. +33 1 44 35 20 20 — CorporateCommunications, tel. +33 1 44 35 20 71. Toll-free number for shareholders: 0800 320 323 (from landlines in metropolitan France). Financialinformation: www.finance.danone.com - www.danone.comThis report is printed on recycled, wood-free paper approved by the Forest Stewardship Council (FSC), an international organization promotingsustainable for