Joint Ventures
Danone has adopted a strategy of growth through joint ventures, particularly in fast-growing emerging markets, because it lacked the management depth and size to grow quickly. In its markets, Danone has built an attractive portfolio in emerging markets over the past 10 years which represents 30% of its sales.
Danone has continued to pursue this strategy and has recently signed joint ventures with companies such as Al Safi in Saudi Arabia (2001), Yakult in India (2005) and Vietnam (2006), AlquerÃa in Colombia (2007), and Mengniu in China (2006).
Danone has been having problems with some of its other joint ventures, notably its joint venture with Hangzhou Wahaha Group (1996) and Britannia Biscuits in India (1995), which have been in high-profile disputes since early 2007 and 2006, respectively. Danone filed for arbitration with Britannia Biscuits in the Bombay High Court on 29 June; arbitration with the Wahaha Group was accepted in Hangzhou on 17 June 2007.
Read more about this topic: Groupe Danone
Famous quotes containing the words joint and/or ventures:
“No Government can be long secure without a formidable Opposition. It reduces their supporters to that tractable number which can be managed by the joint influences of fruition and hope. It offers vengeance to the discontented, and distinction to the ambitious; and employs the energies of aspiring spirits, who otherwise may prove traitors in a division or assassins in a debate.”
—Benjamin Disraeli (1804–1881)
“If one ventures a word with you, will you be offended? But who can keep from speaking?”
—Bible: Hebrew, Job 4:2.
Eliphaz, one of Job’s “comforters,” to Job.