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Danone Expands Dairy Production in West Africa

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Danone Expands Dairy Production in West Africa

Danone Expands Dairy Production in West Africa
May 29
09:45 2017

Danone, together with The Abraaj Group, a leading investor in growth markets, has added three new production lines to its factory at Accra in Ghana. The total investment of US$25 million will help Fan Milk (Ghana), its local subsidiary, to sustain the growing demand for dairy products in the regional West African market.

The investment is proof of Danone and Abraaj’s commitment to local manufacturing and to continue growing the Fan Milk brand in the region for the long term. The new production lines will create about 200 qualified jobs at a time when youth unemployment is one of the most pressing challenges facing numerous African states.

The factory extension will also support the production of FanMaxx, a new creamy drinkable yogurt that will be available to Ghanaian consumers in June and is the first of its kind in West Africa. FanMaxx is a source of calcium and enriched with vitamins. Its creamy texture makes it filling enough to be a light meal replacer. It can be consumed chilled or ambient, on the go, at home or in the office. FanMaxx’ long shelf life (4 months) is particularly suited to the African markets where the cold chain is not always failsafe. FanMaxx is affordable and convenient and will be available in 330ml bottles in more than 5,500 outlets in Accra, Tema and Kasoa by end 2017.

Fan Milk is one of the oldest brands in Ghana. It was founded in 1962 and enjoys outstanding brand recognition in its market. It is a household brand with the highest market share for frozen dairy products in Ghana, its home market. It operates in Côte d’Ivoire, Ghana, Burkina Faso, Togo, Benin and Nigeria, which together gather more than 250 million potential consumers. Danone and Abraaj jointly invested in Fan Milk in 2013. Danone became a majority shareholder in Fan Milk in 2016.

Danone has been active in Africa since 1953, when the company launched its first foreign subsidiary in Morocco. In 2015, Danone created its Africa division as a multi category business to speed up its growth in this strategic region. Africa now accounts for more than 5% of the company’s worldwide sales. Danone is present in 40 African countries, mainly through three business lines: Fresh Dairy Products, Early Life Nutrition and Waters.

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