Danone is to focus on its "blockbuster" brands after withdrawing its skin-enhancing yoghurt Essensia from France less than two years after it was launched, the Financial Times reports.
The French dairy giant, which also sells Evian and Volvic water in addition to Activiia and Actimel yoghurts, could be vulnerable in a downturn, say analysts, as, unlike category rivals Nestle and Muller, they have few products for consumers to trade down to.
Sales in the bottled water category fell 4%, while drinking yoghurts are down 9%, according to data from Bernstein research.
Analysts suggested the withdrawal of Essensis could mark the start of a longer-term shift in strategy at Danone, with experiments in the mass market including 'Eco Packs'.
The company is the latest in a string of food suppliers to withdraw products from the premium functional foods market.
Last November Pepsi abandoned its PJ Smoothies venture, while Unilever withdrew its health drink Adez from the UK just months after its release.