Sector News

Chinese dairy preparing $850 million bid to acquire Stonyfield Yogurt

May 12, 2017
Consumer Packaged Goods

Stonyfield Yogurt, the Londonderry, N.H., company that is America’s top seller of organic yogurt, may be in for a culture change.

Last year, the company’s parent organization, Paris-based Danone Group, drew the attention of the US Department of Justice when it revealed its $10 billion acquisition of the WhiteWave Foods Co., the maker of the Silk soymilk and Horizon organic milk brands.

But subsequent concerns about a potential monopoly in the organic milk market led Danone to reveal in March that after 15 years of ownership, it would sell Stonyfield to avoid antitrust concerns.

For the past few weeks, there has been speculation as to who might acquire Stonyfield Farm Inc. On Wednesday, Reuters reported that Inner Mongolia Yili International Group Co., China’s largest dairy company, was among the bidders. A filing to the Shanghai Stock Exchange showed that the company was prepared to bid $850 million for the company, though it acknowledged that the bid may not be successful.

Many large Chinese food companies have shown interest in purchasing American brands, both to gain expertise in the US marketplace and because of the perceived safety associated with US food companies. Over the past several years, Chinese consumers have faced a string of tainted food scandals, including one at Yili. In 2008, Yili was one of 22 Chinese dairy producers forced to recall their products after over 300,000 people were poisoned.

Today, Yili leads China in yogurt sales, and had a net profit of $820 million in 2016.

The Danone Group has not commented on the bid.

By Janelle Nanos

Source: The Boston Globe

comments closed

Related News

June 8, 2024

Nomad Foods names Ruben Baldew as next Finance Chief

Consumer Packaged Goods

Frozen food maker Nomad Foods has appointed Ruben Baldew as its new chief financial officer, effective 17 June 2024. Baldew will succeed Samy Zekhout, who has stepped down to explore other opportunities outside of Nomad Foods. Zekhout will remain with the company until 31 July to ensure a smooth transition of duties, the Birds Eye maker noted.

June 8, 2024

Danish Crown CEO Jais Valeur to step down

Consumer Packaged Goods

Danish Crown has accelerated the search process for a new chief executive following the announcement by current CEO Jais Valeur that he intends to step down from his role. Valeur, who joined the company as CEO in 2015, will remain in his position until a replacement is found “to ensure no momentum is lost during the recruitment process,” Danish Crown explained.

June 8, 2024

Heineken achieves milestone with first European regenerative barley harvest

Consumer Packaged Goods

Heineken has achieved a significant milestone with the completion of its first large-scale regenerative agriculture barley harvest in Europe. The initiative, developed through Heineken’s Transitions programme and in collaboration with French cooperative Vivescia and its malt subsidiary Malteurop, represents the company’s first foray into regenerative farming at scale.

How can we help you?

We're easy to reach