Danone, the France-based Group which is among the world's biggest food producers, has announced its purchase of JSC Molochnyi Zavod “Rodich”.
According to the latest press release, Danone has been active in the local market since 1999 with imported added-value products such as Activia, Actimel, Rastichka, and Danissimo. This acquisition will enable Danone to strengthen its existing Ukrainian portfolio by adding traditional products, such as kefir and smetana, thus providing Ukrainian consumers with an enhanced range, produced mainly in their own domestic market.

Molochnyi Zavod “Rodich” enjoys a strong market position with its Rodich and Vesely Pastushok brands, and posted sales of 10 million euros in 2005. As a result of the acquisition, Danone will benefit from significant additional local distribution capabilities, as well as access to a strong milk sourcing network and production platform.

The completion of the transaction is subject to the fulfillment of certain conditions including regulatory approvals.

With annual per capita fresh dairy consumption in Ukraine averaging 4 kg, compared with 22 kg in Western Europe, the Ukrainian fresh dairy market offers promising scope for development. The average annual growth for the last three years has been in excess of 15%.

With around EUR 13 billion of total sales in 2005, Groupe DANONE is the world leader in fresh dairy products and bottled water (in volume terms), and n°2 in the biscuit market worldwide.
In Eastern Europe, Groupe DANONE posted sales of EUR 1,2 billion with strong positions in Russia (n°1 in fresh dairy products and biscuits), Poland (n°1 in fresh dairy products and bottled water), Czech Republic (n°1 in fresh dairy products and biscuits), Hungary (n°1 in fresh dairy products and biscuits), Romania (n°1 in fresh dairy products), Bulgaria (n°1 in fresh dairy products).The Rodych company was founded in 2001. It markets its products basically in South Ukraine. Its production facilities allow making 120 tons of dairy products on the daily basis. In 2005 its sales totalled 10 M. euros (12:8 M. USD).

The Anti-Monopoly Committee has allowed the Paris, France-based Produits Laitiers Frais Est Europe to buy the over 50%t stake in the Rodych, the Cabinet press office informs.


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