Danone to invest US$117 million on Specialised Nutrition in China

French food and dairy group, Danone plans to invest €100 million (US$117 million) in China in order to strengthen its specialised nutrition activities, which includes the acquisition of a baby milk production site and the creation of a research center which focuses on breast milk and gut health.
This massive investment will allow the French group to widen and diversify its range of nutritional products and services, specifically adapted to the health needs, habits and tastes of the Chinese population.
This also marks Danone re-entry into the Chinese infant milk segment 5 years after it withdrawn from the market due to an ‘unfounded’ food scare.
In July, Danone acquired Saputo Inc.’s Murray Goulburn Dairy (Qingdao) Co. Ltd. as part of the investment. The deal will secure it with a Chinese registered infant formula milk brand and the related production facility in Qingdao.
Previously, Danone owned China-based formula maker Dumex until late 2015, when it sold the business for €50 million to Chinese dairy producer Yashili International Group Ltd.
Danone’s specialised nutrition division is the company’s 2nd biggest division by sales generating €7.56 billion, or 30% of group sales globally in 2019.
Danone is also pumping part of the investment into its advanced medical nutrition facility in Wuxi near Jiangsu province. The money will enable Danone to develop “protein-based liquid nutritional supplement solutions” as part of the group’s “food for special medical purpose” range. The company said these products nutritionally support healthy ageing and facilitate recovery of patients who are ill.