French dairy group Danone has reinforced its presence in the South American dairy sector through the acquisition of a controlling stake in Chilean firm Vialat.
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Danone has bought a 70% stake in the Chilean dairy activities of Vialat from its parent company Bethia Group. Vialat will retain the remaining 30% of the business.
A Danone spokesperson told just-food today (16 May) that the move strengthened the group’s position in the region, one of its key growth areas. “
We hope to continue to expand our Latin American presence. With dairy consumption in the region rising, we believe this will be a key growth region for us in the future,” the spokesperson said.
With annual per capita fresh dairy consumption in Chile averaging 7.5 kilograms, compared with 13 kilograms in Argentina and 22 kilograms in Western Europe, the Chilean fresh dairy market offers scope for development, Danone said.
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By GlobalDataDanone has been active in Chile since early last year, importing products such as Activia and Yogurisimo from Argentina. The acquisition, Danone said, will enable the company to offer an enhanced range to the market.
The company added that the deal will enable Danone to offer domestically produced goods, providing access to additional distribution capabilities, a milk sourcing network and a local production base.
The transaction is expected to close before the end of June. Danone declined to reveal further financial details.
