Danone Taps Ukraine's Growing Dairy Market

KIEV, Ukraine -- Continuing to bolster its presence in high-growth markets, Groupe Danone has acquired the Ukraine's leading fresh dairy company, JSC Molochnyi Zavod 'Rodich'.

Financial terms of the transaction were not disclosed.

The acquisition will strengthen the French group's existing Ukrainian portfolio, in a country where the annual growth for the last three years for fresh dairy consumption has been over 15%.

With annual per capita fresh dairy consumption in Ukraine averaging 4kg, compared with 22kg in western Europe, Danone claims the Ukrainian fresh dairy market offers promising scope for development.

The group plans to offer traditional products, such as kefir and Smetana, which are produced primarily in their domestic market.

Danone will also benefit from significant additional local distribution capabilities, as well as access to a strong milk sourcing network and production platform.

The Paris-based company has been active in Ukraine since 1999, with imported added-value products such as Activia, Actimel, Rastichka, and Danissimo.

Molochnyi Zavod 'Rodich' enjoys a strong market position with its Rodich and Vesely Pastushok brands, and posted sales of Euro 10 million ($12,7 million) in 2005.

Source: Food Business Online