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CHINA

HISTORY

Danone has invested in China since 1987 and the market has moved from being a new frontier with huge potential to a growth engine of great strategic importance for Danone’s global activities. Today, the company operates 10 plants and employs around 10,000 people in China, and the market has grown to become its third largest market in the world.

 

Danone understands the vast potentials of the China market and is committed to continuing strengthening our commitment here. Furthermore, Danone’s four core businesses – Fresh Dairy Products, Waters, Early Life Nutrition and Medical Nutrition – have already established a presence here and are enjoying significant growth and sustainable development. In this time, Danone has continued to introduce and develop a broad range of both international and local product lines for the Chinese market. Brands such as Mizone, Health, Evian, Badoit, Aptamil, Nutrilon and Nutricia command high levels of brand loyalty among Chinese consumers.

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FOCUS

A multi-brand strategy to better cover all distribution channels

Danone Nutricia Early Life Nutrition adopts a multi-brand strategy in China, and has gradually introduced Nutrilon and Aptamil to China covering major online and offline sales channels, enhancing the bond with Chinese mothers. In 2017, a new “Aptamil Premium” range was developed specifically for the Chinese market. This innovation gives Danone a foothold in the ultra-premium segment, the most dynamic in the category. Meanwhile, the partnership between Danone and Mengniu extended to infant milk formula. Danone took part in a private placement by Yashili and owned 25.0% equity interest in Yashili. In 2015, the collaboration was deepened as Danone announced to transfer Dumex in China to Yashili to build a stronger local IMF brand platform.

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specialized stores stand for more than 40% of sales

Danone has also optimized its presence across different distribution channels to develop links with mothers. The company is investing heavily in the growing network of specialized stores for mothers and children. Mothers come to these stores for advice on feeding their babies and young children. Danone also continues to develop e-commerce, an efficient way of connecting with consumers, via a dedicated team.

Eco-Longmen Project

Jiaquan watershed in Longmen holds strategic importance to Danone China. By 2016, 12 hectares of spring core area has been restored. Various environmentally-friendly farming models have been piloted in local communities. In 2017, community development will continue to be the focus of Danone’s CSR project in Longmen.

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