French dairy giant Danone is to merge its Russian fresh dairy business with local firm Unimilk.

Danone said the deal would create a business that generated annual sales of EUR1.5bn and spanned Russia, Ukraine, Kazakhstan and Belarus.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The Activia maker cited the “complementary geographical presence” between the two companies, pointing to its presence in western Russia and Unimilk’s “higher profile in the east”.

Danone chairman and CEO Franck Riboud added: “Almost 20 years after taking our first steps in Russia, Danone-Unimilk represents a strategic move for Danone in a region which is offering a promise of growth in the years ahead, and where we will be pursuing ambitious goals for the future.”

Unimilk, which will hold 42.5% of the new entity, said the deal with Danone had benefits for the wide dairy sector in Russia.

See Also:

“Since its very beginning Unimilk was established as a company open for partnership, ready for implementation of any bold ideas and projects aimed at our consumers’ satisfaction,” Unimilk CEO Andrey Beskhmelnitsky, who will be chairman of the new venture, said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Our alliance with Danone, the world leader in fresh dairy products, will increase [the] investment potential of the whole industry, set new standards of efficiency, increase demand for high quality raw milk, and will obviously promote consumer market and the development of our teams.”

Danone, who will hold 57.5% of the venture, has an option to buy out Unimilk in 2022.

Filip Kegels, general manager of Danone Fresh Dairy Products in Eastern Europe and Central Asia, will take charge of the operational management of the venture.

 

The deal is subject to gaining regulatory approval in the countries concerned and is expected to close towards the end of the year.