Following its merger with local dairy player Unimilk in 2010, Danone will invest a further US$700m in Russia over the next five to seven years, aimed at driving capacity and growth.
Danone CEO Franck Riboud admits his company is ‘quite nothing in Asian dairy’, but says the French giant is not prioritising that category within the region, and will take time developing its business there.
Last year's severe summer drought in Russia has hit Danone’s third quarter (Q3) 2011 dairy sales in the country, with the French company forced to raise prices to end consumers due to higher ingredients costs.
Following the launch of Danone’s ‘green plastic’ plant-based bottle for its drinking yoghurt brand, the firm said it plans to roll out the packaging in other European countries.
French dairy Danone has built on its 2010 joint venture with Australian co-op Murray Goulburn by belatedly launching its €4bn global selling probiotic yoghurt Activia on the market there.
Emerging markets will be the target for continued growth Danone announced yesterday, as Asian markets contributed significantly to the company’s 15 per cent growth.
As Danone’s share price continues to fall three days after its half year results were released, the company cites several potential reasons for the dip but insists that health claims uncertainty is not among them.
Almost a year to the day after Danone first withdrew submissions for its best-selling probiotic yoghurts from the European Union health claims system, the French dairy giant has pulled its claims from the system once again.
Danone is calling for a clear health claims regulatory timetable to be implemented over the next few weeks because the current lack of clarity is “restricting the competitiveness of businesses”, reports our sister publication Food Manufacture.
The voluntary UK advertising watchdog has told Danone to cease broadcasting TV adverts that stated its one-shot probiotic drinking yoghurt, Actimel, could boost the immune system of children.
Danone has killed the Essensis beauty yoghurt worldwide blaming lower consumer spending but the dairy giant remains convinced of beauty food potential.
Danone’s financial outlook implies tough times may be ahead for dairy producers, with the company facing stagnant organic sales value growth despite some resurgent demand, suggest analysts.
After little more than two years, Danone has pulled its beauty-from-the-inside spoonable yoghurt, Essensis, from French retail shelves, despite a re-launch in 2008.
Danone remains tight-lipped over reports that it hopes to merge a
number of rival companies run by the founder of its Chinese joint
venture partner Wahaha into its own operations in the country.
Group Danone posted a 7.2 per cent increase in sales during the
full 2007 fiscal year amounting to €14.5bn, on the back of a strong
performance in its dairy and bottled water businesses.
Danone yesterday remained tight lipped over the possibility of
making an imminent acquisition into India's high growth dairy
market, as part of the company's longstanding expansion aims for
the country.
This week, Starbucks drops organic milk form its US stores, a
Unilever manager is held at his own plant by angry workers and
Danone teams up with its suppliers to improve operational
efficiency.
Danone's right to the trademarks of joint venture
partner Wahaha have been terminated after
it lost an arbitration battle in a Chinese court, the group
said today.
Danone was the world's leading producer of dairy products in 2006,
accounting for 5.1 per cent of total global sales, narrowly ahead
of multinational rivals Nestle and Kraft Foods, says market analyst
Euromonitor.
France-based Danone has successfully frozen the assets of a number
of enterprises allegedly linked to Chinese joint venture partner
Wahaha, on the back of increasing legal pressure over property
rights in the country.
Danone and Numico will be forced to offload some of their European
operations to go ahead with their planned merger into one of the
world's leading nutrition companies.
Danone is a step nearer to going it alone in the Chinese dairy
market after selling its entire 20.01 per cent stake in
Shanghai-based Bright Dairy and Food and terminating a distribution
agreement for its products.
There was more trouble for Danone's joint-venture operations this
week as the company launched legal action against
Colombia-based rival Alpina in a trademark dispute.
Danone has played down fears over the safety of some of its yoghurt
products as it becomes the latest European company to be hit by
concerns over possible dioxin contamination in guar gum.
Danone yesterday announced a major restructuring of its senior
management as it continues to refocus its operations towards being
a leading player in health and nutrition.
Danone has increased like-for-like sales by 8.2 per cent to €7.5bn
during the first half of the year as it continues to refocus its
operations towards health and nutrition.
Standard & Poor's announced today that it has lowered
its credit ratings on French company Danone, based on
the projected increased debt due its proposed acquisition of
Numico.
Danone's soap opera-like conflict with Chinese joint venture
partner Wahaha continued to escalate yesterday, with the Asian firm
attacking its newly appointed chairman.
Group Danone is experiencing further set backs to its plan to
expand its presence into Asia's booming dairy markets, as an Indian
joint venture partner turns the tables on the dairy giant,
according to press reports.
A legal disagreement between Danone and a Chinese business
partner today got personal, after the dairy giant was branded as
being "despicable" for launching a
court action in the US.
France's Danone and Japan's Yakult will continue their strategic
alliance involving closer cooperation on R&D and entry into new
markets, maintaining their positions as leaders in the probiotics
market.
Danone gave a bullish account of its 2006 performance, citing
strong growth for blockbuster dairy brands and an 'outstanding'
performance in beverage markets.
France's Danone must pay a €42m fine for its role in a cartel in
Belgium, an EU court has ruled, backing Commission plans to get
tough on repeat offenders.
Danone, the world's leading dairy producer, has announced plans to
work alongside a local counterpart Dutch Mill Co. to distribute and
manufacture a range of fresh dairy products within Thailand.
French biscuits, water and yoghurt group Danone said yesterday that
it had signed a joint venture with China's leading dairy Mengniu to
cooperate in the production and distribution of fresh dairy
products in China.
It is not a task for the faint-hearted, but French dairy and food
group Danone has pledged to use more research and development
resources to tackle malnutrition around the world.
