Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Numico production line … it all grew out of a milk formula/AFP


Danone moves to satisfy Chinese taste for dairy food

Numico production line … it all grew out of a milk formula/AFP

Numico production line … it all grew out of a milk formula/AFP

PARIS, May 20 – French food industry group Danone announced on Monday tie-ups in China with the aim of establishing a strong position amid growing demand for dairy products in the vast Chinese market.

Danone, a world leader in the dairy food industry, will invest about 325 million euros ($418 million) to create two joint ventures with Chinese interests to tap the growth of Chinese demand for fresh dairy products, the firm said.

Danone said that it would create a venture with Cofco, a state-owned food industry company which would open the way for a strategic partnership with Mengniu, a Chinese dairy product company.

Initially, Danone will hold 4.0 percent of Mengniu with the intention of increasing this stake in line with future market conditions, the French firm said.

The second venture will be linked directly to operating activity.

The venture will group assets from the two companies and achieve total sales on the basis of figures for 2012 of 500 million euros.

Danone said this activity would account for an estimated 21.0 percent of the Chinese market and would comprise 13 factories in China.

It would benefit from the two brands, Danone and Mengniu.

The second venture would also develop synergies by using expertise from Danone in terms of quality and innovation and would benefit from the market leadership and “vast” distribution network operated by Mengniu which would hold 80.0 percent of the new business.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...