Blog: Dean BestThe latest Mead Johnson venture is born

Dean Best | 30 March 2010

After last week's news of a strengthened domestic rival, Mead Johnson, the US baby-food group, is bolstering its presence overseas.

Following last week's announcement of the proposed sale of own-label giant PBM came news today (30 March) of Mead Johnson's plans to make its first foray into the Middle East.

Mead Johnson is teaming up with Saudi dairy giant Almarai (already a partner of PepsiCo in the region) to run an infant-nutrition venture in the Gulf states.

The two companies will run a business targeting a local infant-nutrition market worth some US$450m, Mead Johnson told just-food today (30 March).

Ventures in emerging markets are notorious for taking time to find their feet and it can be a while before they turn a profit but Mead Johnson insists its Gulf venture will be profitable by 2012.

Of course, time will tell but Mead Johnson already runs businesses in China and Latin America so has the experience of emerging markets.

What's more, in Almarai, the US group has a partner with a strong presence in the Gulf region and, in PepsiCo, has its own experience of teaming up with US partners.


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