Groupe DANONE signed a series of joint venture contracts with Mengniu Dairy Group in December 2006. Some cooperation as outlined in these contracts has currently begun.
However, since some conditions for this cooperation are not sufficiently advanced, and since the prerequisites for further investments have not been met within the agreed timeframe, both parties agreed the joint venture will automatically be terminated on December 18th, 2007.
Both parties have also agreed that the termination of the joint venture will not affect future cooperation opportunities such as the co-packing and distribution of yogurt under the BIO brand.
As leaders in China and the global yogurt market respectively, Mengniu Dairy Group and DANONE will actively explore future cooperation opportunities in the yogurt industry.
Groupe DANONE is a Fortune 500 company and one of the most successful healthy food companies in the world. Its mission is to bring health through tasty, nutritious and affordable food and beverage products to as many people as possible all along your life. Groupe DANONE with 200 plants and 88 000 employees has a presence in all five continents and over 120 countries. In 2006, Groupe DANONE recorded 14 billion euros sales. In 2007, Groupe DANONE acquired Numico, and reinforces its leading positions in healthy food in four business lines: fresh dairy products (n°1 worldwide), beverages (n° 2 in the packaged water market), baby food (n°2 worldwide) and clinical nutrition.