Danone has extended its distribution network in Algeria with the opening of a fresh dairy products depot in Annaba.

The move is part of the French group’s on-going development strategy in the North African state where it claims to control 40% of the dairy products market. Danone’s chief competitor is local firm Soummam.

The depot will cover 17 departements in the east of the country while around 100 additional wholesalers will be marketing Danone products.

Danone, which set up its activities in Algeria in 2001 following the acquisition of privately-owned dairy firm, Djurdura, is now eyeing extending its network to the south of the country as well as diversifying its range of products.

Algeria’s dairy products market is viewed as having considerable growth potential with yoghurt consumption, in particular, varying between 5 kg and 6 kg per head annually compared to 10 kg in neighbouring Morocco and Tunisia.

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