Danone Raises Interest in Danone Djurdjura in Algeria to 95%
With annual per capita consumption of fresh dairy products in Algeria averaging only 7 kilos, compared with 23 kilograms in Western Europe, the Algerian market offers promising scope for development.
26/04/06 Groupe Danone has signed a letter of intent to raise its interest in Danone Djurdjura in Algeria from 51% to 95%. This agreement reflects Groupe DANONE’s strategy of strengthening its position in North Africa and the Middle East.
With annual per capita consumption of fresh dairy products in Algeria averaging only 7 kilos, compared with 23 kilograms in Western Europe, the Algerian market offers promising scope for development. The average annual growth for the last 3 years has been in the order of 20%.
Danone Djurdjura currently leads the Algerian market in fresh dairy products with around 40% market share.
The company reported sales over EUR 60 million in 2005 with its main brands: Danao, Petit Gervais aux Fruits, Activia, Danette and Fruix.
Mr. Boussaad Batouche, one of Groupe DANONE’s partners in the venture since the Algerian company was founded in 2001, will hold the remaining 5%.
The transaction will be effective by the end of June assuming all administrative requirements are met. Danone Djurdjura financial statements will be then fully consolidated.
