Danone invests €100m to strengthen Specialized Nutrition business in China
The French dairy company has acquired infant formula maker Murray Goulburn Dairy (Qingdao) and opened a research centre in Shanghai
Danone has announced a series of investments totalling €100 million to strengthen its Specialized Nutrition business in China. The opening of an open-science research centre in Shanghai and the acquisition of Murray Goulburn Dairy, an infant milk formula specialist owned by Saputo, a publicly-listed Canadian dairy company, are some of the investment the company will undertake.
Danone also plans to further develop offerings in FSMP (Food for Special Medical Purposes), meaning food for people whose nutritional requirements cannot be met by normal foods.
These investments will 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 also announced that its Early Life Nutrition business unit in China has achieved B Corp certification. This means that Danone becomes the biggest B Corp in Asia, which fully embodies the reality of its commitment towards the well-being of local populations and the preservation of the local environment.
It represents also an important step towards Danone’s accelerated ambition to become B Corp certified by 2025.
For Véronique Penchienati-Bosetta, Executive Vice President, Specialized Nutrition, the opening of the Open Science Research Center, the acquisition of local manufacturing capabilities and the B Corp certification are key milestones for Danone’s presence in China as they will allow the company 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.
“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,” said Penchienati-Bosetta.
In detail, the €100 million investment to strengthen local capabilities of Danone’s Specialized Nutrition in China includes:
- A new Danone Open Science Research Center for LifeTransforming Nutrition. Located in Shanghai, the centre will serve as Danone’s platform to conduct studies and research in the region, notably focusing on breast milk and gut health.
It will enable Danone to develop more relevant nutrition products and services, building on local knowledge and science, and contributing to the country’s ‘Healthy China 2030’ agenda.
The facility will bring together the public sector, medical and academic institutions, business partners and consumers, and will combine the skills of over 100 researchers in the fields of nutrition and consumer science, quality and food safety, and digital innovation.
- The acquisition of Murray Goulburn Dairy (Qingdao) Co Ltd from Saputo Dairy Australia. This brings with it a registered infant milk formula brand and a facility located in Qingdao. Completed in June 2020, the transaction means Danone now has its first production facility for infant milk formula in China.
- The investment will also benefit the company’s advanced medical nutrition facility in Wuxi, Jiangsu province. It will enable it to develop protein-based liquid nutritional supplement solutions and expand further its Food for Special Medical Purpose offerings to nutritionally support healthy ageing and facilitate recovery of patients who are ill.
Investing further in local capacities and acting as a B Corp locally with strong societal commitments, Danone reaffirms its support to the Chinese national priorities “Healthy China 2030” and its aim to serve the health of the Chinese population at every stage of life.