Juan Garibaldi (CEO of Danone) on Sustainable Growth, AI, and Decision-Making in Consumer Goods
Episode 6 | Juan Garibaldi & Ernesto Weissmann
“There is something magical and cruel at the same time about consumer goods: every day, we’re being tested.”
That’s how Juan Garibaldi, CEO and Senior VP at Danone South Cone, defines the industry he has worked in for over 30 years. And he’s not exaggerating. Consumer goods is a fascinating category where evolution is constant, and staying current is a must. Shifts in consumer behavior, technological innovation, new cultural trends, and competitive pressure all squeeze margins. In a sector where agility, creativity, and adaptability are essential to stay relevant, making good decisions becomes a core capability. That’s why we invited Juan to join us for a powerful conversation in this sixth episode of Decision Leaders.
Juan Garibaldi, CEO & Senior VP at Danone South Cone
At Tandem, we are passionate about how better decisions can lead consumer goods companies to profitable and sustainable growth. That’s why we wanted to speak with someone who knows that challenge from the inside. Juan has held leadership roles at PepsiCo, Clorox, Mondelez, Mastellone, and now Danone. He understands the daily dilemma perfectly: multiple, fast, high-impact decisions that define whether the consumer reaches for our brand or for the competition.
This conversation is especially relevant in a moment when the consumer goods industry is becoming increasingly complex. Agile new competitors, tighter margins, the rise of white labels, and the demand for hyper-personalization are changing the rules of the game. On top of that, consumers are more informed, less loyal, and highly price-driven. They expect omnichannel experiences, sustainable products, and authentic value propositions.
All of these themes are part of Tandem’s daily conversations and the work we do with our clients. This time, we invited Juan Garibaldi to our virtual table to talk about strategic decisions, growth, leadership, and technology in an open conversation with Ernesto Weissmann, Partner at Tandem.
Every Day Is a Test: Decision-making in Consumer Goods
Ernesto Weissmann: What makes decision-making in consumer goods unique? How do you connect with consumers?
Juan Garibaldi: There is something magical and cruel about this industry: every day, we’re being tested.
Unlike a durable purchase like a car, where you go through a detailed process and use it for years, in consumer goods, the test happens daily. Every day the consumer decides what product to buy. They move their hand a few centimeters left or right and choose between me and the competition. As cruel and as fantastic as that.
And it’s not just about having the right insight. You need to execute well on what you’ve learned. If the consumer expects a certain price and you change it, even for the better, you’re missing the mark. If the shelf placement is off, or distribution fails, you’re losing value. It’s a combination of factors.
You can’t stop at theory or research. Execution is everything. That’s where all these elements come together.
The Role of Artificial Intelligence in Commercial Decisions
EW: How are you using Artificial Intelligence at Danone to improve decisions?
JG: AI provides many tools that make decision-making in consumer goods faster, more scalable, and more efficient.
Take demand planning, for example. We used to run pilot tests in selected stores and analyze in real time how different marketing mixes performed. Today, we have preconfigured tools that scale that analysis to thousands of cases.
That gives us a level of precision we didn’t have before. We’ve gone from error margins of 10 to 15 percent to much more efficient estimates thanks to our ability to process large volumes of information.
We also use AI to estimate costs and margins. Weather conditions like drought or flooding affect livestock feed and, in turn, milk production. If there’s drought, there’s less grass and less milk. If there’s too much rain, the milk is more diluted and has less fat.
All of that affects availability and price. That’s what happened last year in Argentina with a major drought, and in Brazil with severe flooding. Today we can forecast milk availability, model price elasticity, demand costs, and automatically define product costs.
AI is now integrated into multiple areas: demand forecasting, production planning, pricing, marketing, and cost estimation. It’s a key tool for making smarter commercial decisions.
A Snapshot of the Consumer Goods Industry
EW: How do you see the state of the consumer goods industry today?
JG: It’s true that consumer goods is going through a tough moment, partly due to what I call “comparative effects.” What do I mean by that? Other industries (especially tech, AI, or software) are showing much higher growth rates and stronger EBITDA progression.
As a mature industry, our growth projections are much lower. We’re talking about 100 basis points of annual bottom-line growth, which naturally makes us less attractive to investors.
Still, we’re a stable and recurring business. People continue to consume food and beverages. But within consumer goods, there are key differentiators. Beyond sustainability, we also contribute to health through nutrition. That’s becoming a more important part of our value proposition.
EW: What role does sustainability play today in consumer goods?
JG: We have a core principle that I find very smart. It resonates deeply with both our teams and the brands we bring to consumers: if our business is not sustainable, it has no future. But if there is no business, it also has no future.
There was a time when sustainability was approached from a romantic point of view. Many companies focused on being sustainable for its own sake, without building a viable business model. And naturally, they didn’t last.
What’s Next on Decision Leaders
Our conversation with Juan Garibaldi offers a powerful lesson on how to make strategic decisions in one of the most demanding industries. A world where every day is a test, and where creativity, agility, and flawless execution are required to earn the consumer’s choice.
At Tandem, we believe in the value of those decisions. We work alongside leaders and organizations that challenge inertia, rethink assumptions, and transform their models to grow with impact.
Soon, we will continue the conversation with another expert voice in marketing and sales from one of the world’s largest consumer goods companies.
In the meantime, we invite you to revisit our previous episode with Gabriel Galván, Managing Director of Mattel LATAM.