News

Danone buys into another African company

French dairy giant Danone is buying a 40-percent stake in East Africa’s largest dairy company.  Brookside has 40 percent of Kenya’s dairy market with sales of around $176 million in 2013.  The company sells a variety of dairy products in Kenya, Uganda and Tanzania.  It takes-in milk from 140,000 farmers in the region.

This is Danone’s third acquisition in Africa in the last two years; it bought a 49-percent share in West Africa’s Fan Milk International and owns 67 percent of Morocco’s top dairy company, Centrale Laitiere.

With China’s economy slowing, companies see Africa with a growing middle class as the next great growth market.

Based in Paris, Danone has more than 190 production plants around the globe with sales exceeding 21 billion Euros ($28.4 billion).  60 percent of Danone’s sales are in emerging countries.  Brand names include DANNON and Activia yogurt products and Evian water.