Danone is acquiring YoCream, the leading producer of frozen yoghurt in the United States, for $103m. The deal will enable Danone to move into frozen yoghurt, a fast growing segment in the US. It will also gain access to an away-from-home distribution network, in addition to its existing channels.
The move reflects Danone’s strategy for expansion of the fresh dairy products market in the US, in particular by extending the times and places where its products are consumed.
YoCream has pioneered the innovation, production and marketing of frozen yoghurt in the US. The company operates a state-of-the-art production facility in Portland, Oregon, to manufacture its ‘true’ frozen yogurt, which contains real yogurt that is fermented and cultured on site daily.
YoCream’s 2010 net sales are estimated at approximately $58m. The acquisition is subject to usual conditions but is expected to be closed by the end of 2010.
Danone enjoys leading positions in healthy food in four businesses – fresh dairy products (number one worldwide), water (number two in the packaged water market), baby nutrition (number two worldwide) and medical nutrition.