Danone to invest in China’s Specialized Nutrition business

Danone has announced a series of investments to strengthen market capabilities and support its Specialized Nutrition business in China.

As part of this, the company plans to invest €100m, which will be used for the opening of an open-science research centre in Shanghai and to acquire local infant milk formula capabilities.

The investment will also be used to enhance the company’s capacity to further develop offerings in food for special medical purposes (FSMP), which are designed for people whose nutritional requirements cannot be met by normal foods.

Danone will use its new research centre to conduct studies and research on breast milk and gut health.

The facility will allow the company to develop new relevant nutrition products and services, building on local knowledge and science.

The company will also acquire Murray Goulburn Dairy (Qingdao) from Saputo Dairy Australia, and the deal includes a registered infant milk formula brand and a facility in Qingdao.

Additionally, the investment will benefit the company’s advanced medical nutrition facility in Wuxi, Jiangsu province.

Danone also announced that its Early Life Nutrition business unit in China has achieved B Corp certification.

Danone Specialized Nutrition executive vice-president Véronique Penchienati-Bosetta said: “For some 30 years, Danone has been serving the needs of people in China, for both early life nutrition and nutrition for those ill or aged.

“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.”

The investment will also enable the company to develop protein-based liquid nutritional supplement solutions.