Danone injects €100m to bolster specialized nutrition business in China

Danone said that it is investing €100 million in China for bolstering its specialized nutrition business in China besides broadening and deepening its variety of nutritional products and services that are customized to Chinese health requirements, traditions and tastes.

The French dairy giant will use the investment for opening an open-science research center in Shanghai, for acquiring domestic infant milk formula capabilities, and expand capacity to further develop offerings in food for special medical purposes (FSMP).

The company said that the new Danone Open Science Research Center for Life-Transforming Nutrition will serve as the company’s platform to carry out studies and research in the region, particularly focusing on breast milk and gut health. The Shanghai research center is expected to help the French dairy giant to create more relevant nutrition products and services, building on domestic knowledge and science, and contributing to the ‘Healthy China 2030′ agenda.

Danone will use the investment for acquiring Murray Goulburn Dairy (Qingdao) from Saputo Dairy Australia. The deal gives the French dairy giant a registered infant milk formula brand and a facility in Qingdao.

The acquisition of Murray Goulburn Dairy (Qingdao), which was wrapped up in June, also gives Danone its first facility for producing infant milk formula in China.

Danone injects €100m to bolster specialized nutrition business in China. Photo courtesy of Incuś/Wikipedia.org.

Véronique Penchienati-Bosetta – Executive Vice President of Specialized Nutrition said: “For some thirty years Danone has been serving the needs of people in China, for both early life nutrition and nutrition for those ill or aged. The opening of the Open Science Research Center, the acquisition of local manufacturing capabilities and the B Corp certification are key milestones for Danone’s presence in China as they will allow us to further invest responsibly in the promotion of healthy and balanced diets, grounded in scientific research and tailored to Chinese nutritional and health needs, habits, and traditions.

“This investment further demonstrates Danone’s belief in the long-term growth potential of the Infant Milk Formula and medical nutrition market in China and in the power of nutrition to positively impact health trajectories.”