Danone has announced plans to transfer control of its dairy food business in Russia in a transaction that could result in a write-off of up to €1 billion.
Announced on Friday, Danone said the decision to offload its Russian Essential Dairy and Plant-based (EDP) operations was “the best option to ensure long-term local business continuity, for employees, consumers and partners”.
According to Danone, the business represented around 5% of the company’s net sales during the first nine months of 2022.
Earlier this year, the dairy giant announced that it would restrict all investments in Russia. However, the company said it would continue to produce and distribute its dairy and infant nutrition products to meet the essential food needs of the local population.
According to Reuters, Danone is retaining its infant nutrition unit in the country following last week’s announcement.
The transaction to offload Danone’s EDP Russia business is subject to regulatory approvals.
By Gwen Jones
Currently chief executive of GreenV – an international group of companies active in the horticultural sector – van Karnebeek spent a large portion of his career at Heineken, working in commercial, marketing and general management positions. He served as chief commercial officer at the Dutch brewer from 2015 until 2021.
The facility combines the existing Kerry office in Barcelona with a new customer suite and application labs. It will enable the company to work more closely with its customers in Southern Europe to develop food and beverage solutions.
The sweet and culinary flavor creation labs are the latest addition to the company’s expansive campus that has been in operation since 1964, spanning more than 312,150 square feet in Brabrand, Denmark. The innovation hub is home to more than 400 employees engaged in research, application development, ingredient and flavor creation.