(Reuters) – Yashili International Group Ltd has completed a 150 million euro ($159 million) deal to buy all of Danone SA’s infant formula unit Dumex China, the firms said on Wednesday.
France’s Danone has been struggling to revive its Dumex China unit after food safety scares damaged the business, squeezing its share of a fiercely competitive $20 billion infant formula market.
“By bringing the Dumex and Yashili brands closer together, the operation will build a strong local infant milk formula (IMF) brand platform,” Danone said in a statement on Wednesday, confirming completion of the deal.
Danone said in July it was planning to sell its flagship Dumex infant formula unit in China, which has been hit by food scares, taking a 398 million euros ($437 million) impairment charge.
Dumex China saw its net sales plummet to 1.3 billion yuan ($203.2 million) in 2013 from 5.7 billion yuan ($890.8 million) in 2012, after a food safety scare in 2013 hit the brand’s reputation with consumers. The scare, linked to New Zealand supplier Fonterra, was later shown to be unfounded.
Mengniu owns just over 51 percent of Yashili, while Danone holds a 25 percent stake.
The deal is subject to approval from authorities and Yashili’s shareholders. ($1 = 0.9410 euros) ($1 = 6.3985 Chinese yuan renminbi) (Reporting by Donny Kwok and Adam Jourdan; Editing by Stephen Coates)
Danone has appointed Carla Hilhorst to the newly created position of senior vice president of research and innovation categories and zones, as the company looks to make science the heart of its business. Hilhorst, who brings over 30 years of experience in research and innovation, will report directly to Isabelle Esser, Danone’s chief research, innovation, quality and food safety officer.
The move, part of Pernod Ricard’s strategy to enhance its premiumisation efforts, will allow the company to focus more resources on its portfolio of premium international spirits and champagne brands that drive the growth of its business. This decision aligns with the company’s commitment to delivering sustainable value for shareholders, employees, clients and partners.
Schai – who is the current CEO of Swiss chocolate company Lindt & Sprüngli’s Australian operation – has previously worked with Aryzta from 2015-2018, where he served in roles including managing director for Asia Pacific and global strategic business lead (McDonald’s). The fast-food giant McDonald’s is one of Aryzta’s significant clients.
