The Bank co-invested with Groupe Danone in its Russian dairy subsidiary, Danone Industria in 2001as part of a Multi-Project Facility (MPF) (see PSD: http://www.ebrd.com/english/pages/project/psd/2001/1968.shtml). In 2010 the Bank exchanged its shareholding in Danone Industria for a stake in Danone CIS, a holding company that consolidates the subsidiaries of Danone in Russia, Ukraine, Belarus, Kazakhstan and Azerbaijan to support the Danone operations in those countries.
The Bank’s investment is expected to have the following main impact on the transition in the Region: a) Market expansion The Bank is supporting the expansion of Danone’s dairy operations in Ukraine, Belarus and Kazakhstan in addition to Russia where the Bank already co-invested in Danone Industria. The Belarusian and Kazakh dairy markets are still in relatively early stages of their development, with no major local operator able to produce high quality dairy products. Danone’s product portfolio mix remains unique for the region, with a number of strong and affordable brands of children’s yoghurts, yogurt drinks, and desserts. (b) Backward linkages.
Further expansion of Danone’s operations in the region will have a positive impact on the local fresh milk suppliers (with most of them being small independent farms).
European Bank for Reconstruction and Development.Country: Regional.Project number:41758.Business sector: Agribusiness.Public/Private:Private.Environmental category:B Board date:8 June 2010.Status: Signed. PSD disclosed:9 Dec 2011