July 17, 2020

Danone invests US$114 million to strengthen Specialised Nutrition unit in China

French dairy giant Danone on Thursday, July 16, announced a series of investments in China to strengthen its local market capabilities, particularly its Specialised Nutrition business in the country.

In a press release, the company said the investments, totalling EUR100-million euro (RMB790 million; US$113.9 million), include the opening of an open-science research centre based in Shanghai, the acquisition of local infant milk formula capabilities, and the expansion of capacity to further develop offerings in FSMP (Food for Special Medical Purposes), or food for people whose nutritional requirements cannot be met by normal foods.

It said the investments would enable the company to broaden and deepen its range of nutritional products and services that are tailored to Chinese health needs, traditions and tastes.

Danone, meanwhile, also announced that its Early Life Nutrition business unit in China has achieved B Corp certification. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose.

Danone said the certification represents an important step toward Danone group's aim to become B Corp-certified by 2025.

"For some thirty years Danone has been serving the needs of people in China, for both early life nutrition and nutrition for those ill or aged. The opening of the Open Science Research Centre, the acquisition of local manufacturing capabilities and the B Corp certification are key milestones for Danone's presence in China as they will allow us to further invest responsibly in the promotion of healthy and balanced diets, grounded in scientific research and tailored to Chinese nutritional and health needs, habits, and traditions", said Véronique Penchienati-Bosetta, executive vice president, Specialised Nutrition.

"This investment further demonstrates Danone's belief in the long-term growth potential of the infant milk formula and medical nutrition market in China and in the power of nutrition to positively impact health trajectories", she added.