Franck Riboud, upon becoming Chairman and CEO of Groupe Danone, began to rationalize the company's organizational structure. The company, then with over 78,000 employees in 150 countries, had diversified extensively under the management of his father, Antoine Riboud. Playing to its strengths, Franck Riboud narrowed the company to three lines of business with a focus on strong global brands – fresh dairy products, beverages, and biscuits – and divested company interests in pasta, sauces, soups, ready-to-serve dishes, and candy.

Franck Riboud announced that: “I don't see why I will not drive Danone as my colleagues are driving their American companies or their Italian companies or their UK companies. If we want to be a worldwide player, we have to play by the rules. We are going to create positive value year after year.” In the year after Franck took the helm, the company listed its American Depositary Shares on the NYSE. In the next several years the stock of Groupe Danone (hereafter, Danone or the Group) rose about 65 percent, outperforming Unilever, P&G, and Coca-Cola.

Danone announced three strategic priorities: “[R]efocus on three core businesses where we are already leaders on world markets (fresh dairy products, beverages, and biscuits), expand our international presence, and enhance profitability – and with it shareholder value.” Franck Riboud's early success at Danone had resulted from corporate restructuring. Many wondered whether he could maintain the company's momentum in the highly competitive global food market.