The bid announcement comes after Danone mentioned it could promote US-based Stonyfield which was a requirement following its acquisition of WhiteWave in April 2017.
Dean Meals is reportedly additionally within the operating to purchase Stonyfield from Danone, however has appeared to show its consideration in direction of strengthening its non-dairy choices with an funding in Good Karma, maker of non-dairy flax-based spoonable and drinkable yogurts, earlier this month.
The worldwide natural dairy market was price $718m in 2017, up from $527m in 2011, in response to market analysis supplier, Euromonitor Worldwide, and Stonyfield’s share of the natural dairy yogurt market elevated by a CAGR of 4.5% from 2011-2016.
Yili seeks natural dairy progress
China is a promising marketplace for natural yogurt and Danone already has a historical past of working with the nation’s dairy firms. In 2014, Danone and Inside Mongolia Mengniu Dairy Trade entered a three way partnership, Inside Mongolia Mengniu Dairy, which operates its chilled dairy companies.
In line with Euromonitor Worldwide’s Well being and Wellness database, China has a extremely consolidated natural packaged meals and beverage market, with the highest three gamers accounting for greater than 80% mixed retail worth gross sales in 2015. Mongolia Yili Industrial Group is the biggest participant in China’s natural CPG market with a 35% share, adopted by Mengniu with a 32% share.
With the Chinese language market set to achieve $2bn in natural retail progress by 2020, Yili Industrial Group has been making an attempt to develop its natural portfolio after its plan to amass a 37% stake for $679m in China-based Shengmu Natural Milk in October 2016 fell by means of as a result of Beijing regulators didn’t approve the deal.
