Danone CEO on price hikes uncertainty amid Iran war: ‘Nobody knows’
A woman shops for fast food at Eataly in the Manhattan neighborhood of New York City on March 19, 2026.
Robert Nickelsberg | Getty Images
Danone’s The CEO told CNBC that inflationary pressures from the Iran war could force the company to consider price increases as the outlook for the conflict in the Middle East remains highly uncertain.
“We’re not there yet,” CEO Antoine de Saint-Affrique said when asked if the company would raise prices.
“No one knows when [the war] it’s going to stop, and depending on how the next two to four weeks play out, the outcome from a macroeconomic perspective is going to be very, very different,” he told CNBC’s Charlotte Reed.
“If it lasts long enough, it will have an impact,” he added.
His comments come as companies increasingly consider how war could affect their operations and cost bases.
The conflict in the Middle East entered its sixth week, with US President Donald Trump escalating his stance towards Iran over the weekend in favor of reopening the Strait of Hormuz.
On Monday, the president said Iran had until 8 p.m. Eastern time to reopen the strategically important strait through which a fifth of global oil supplies normally pass.
Effectively closing the narrow pass has led not only to increased energy prices but also to increased fertilizer and transportation costs.
International Monetary Fund President Kristalina Georgieva warned on Monday that a war with Iran will inevitably lead to higher inflation and weaker growth even if the conflict is resolved soon.
Earlier this month, the British Food and Drink Federation (FDF) predicted food inflation would be at least 9% by the end of the year; this estimate was revised upwards from the previous estimate of 3.2%. This would be the highest annual food and non-alcoholic beverage inflation since 2023.
“Given the rapidly changing nature of the situation, this revision is based on the assumption that the Strait of Hormuz will be opened to cargo traffic within the next two-three weeks and most important facilities such as oil, gas and fertilizer fields will return to normal within a year.” FDF said on April 1.
“If it lasts long enough, it will have an impact,” De Saint-Affrique said.
Healthy diet change
While acknowledging the macroeconomic uncertainty and headwinds ahead, he remained optimistic that his company could remain resilient despite macroeconomic headwinds.
“This is a time when you need to continue to invest behind brands,” he said.
“People are focusing, so you are either relevant or you are not… It is time for us to focus on what makes us different, what makes us unique and what brings value to the consumer.”
Danone reported While overall price growth in the fourth quarter was roughly 2.1%, volume-driven growth was 2.5%.
The company claims it can stay relevant by leveraging its healthy brands as food brands face increasing competition from cheaper private labels that also offer higher margins to grocers. In March, it announced it would acquire protein shake maker Huel for an undisclosed sum to optimize its position in the fast-growing nutrition space.
Retailers also warned they can only absorb increased costs for so long before passing them on to their customers.
British retailer Next said late last month that it was responsible for £15 million ($20 million) in additional costs likely to arise from the Middle East conflict, such as fuel and air transport, assuming the outage lasted three months.
“If we see these costs continuing beyond the next three months, we will begin to reflect the costs in higher pricing,” Next said.
