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Danone Expands in US Baby Food Market

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Danone Expands in US Baby Food Market

Danone Expands in US Baby Food Market
May 14
11:29 2013

Danone is acquiring an equity stake of over 90% in Happy Family, the fourth largest contender in the US baby food market, for an undisclosed price. Launched in 2006, Happy Family is one of the most innovative and dynamic companies in the US baby food sector, where it holds over 4% of the market. Its gross sales total more than $60 million and strong growth is expected in 2013.

Specializing in products made with premium organic ingredients, Happy Family has been a driver in the baby food category’s growth over the past few years. Its robust development is driven by a wide and varied range of products that combine convenience with clearly defined nutritional benefits.

“We are delighted with this acquisition in an innovative and fast-moving segment of the baby food market. Building on a business model that has proven its effectiveness, we plan to step up the development of Happy Family and its brands,” says Felix Martin Garcia, executive vice-president of the Danone Baby Nutrition division.

“By joining Danone, Happy Family will benefit from the expertise of a major international group, in particular for distribution and its renowned R&D capabilities,” says Shazi Visram, founder and chief executive of Happy Family. “This agreement will allow us to further our goal of providing organic nutrition to more children, both by making our products more available and by continuing to provide new innovations to the baby and toddler category.”

The transaction is subject to the approval of the relevant authorities and is expected to be finalised in the next few months. Baby nutrition is one of Danone’s four business sectors. The others are fresh dairy products, waters, and medical nutrition.

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