Danone boosts its investments in Nigeria amid market challenges

NIGERIA – Danone, a French multinational dairy company, has announced plans to double down on its plans to invest in Nigeria, expanding its product offerings.

This announcement comes as other multinationals have pulled out of the continent’s largest consumer market in the last two years.

Speaking to the Semafor, Christian Stammkoetter, Danone’s head of Asia, Middle East, and Africa, said, “We are convinced about the potential of Nigeria.”

After President Bola Tinubu’s administration applied tough economic policies soon after coming to office nearly two years ago, multinational companies such as Procter & Gamble, GSK, and Unilever cut back their presence in Nigeria or pulled out, typically citing currency devaluations and rampant inflation.

Danone commissions US$9.1M yoghurt production line

In 2022, Fan Milk, a Danone subsidiary, commissioned its new yoghurt production line in Ibadan, Oyo State.

The commissioning ceremony highlighted the new facility, a product of an €8 million (US$9.1 million) investment by Danone, representing half of the company’s capital expenditure in Africa for 2021.

This substantial investment highlighted Danone’s commitment to Nigeria, a country where the company has had a presence since the 1960s.

The facility’s new production line is set to enhance Fan Milk’s ability to meet growing demand and improve the quality of dairy products available to Nigerians.

The event, attended by Governor Seyi Makinde, former President Olusegun Obasanjo, Nigeria Investment Promotion Council CEO Aisha Rimi, and other officials, highlighted an important advancement in Nigeria’s dairy sector.

Governor Makinde, who was represented by his Deputy, Adebayo Lawal, emphasized the positive impact of the new facility on the local economy.

He noted that the investment is expected to create numerous job opportunities, stimulate economic activity, and elevate the quality of dairy products for consumers in the region.

Véronique Penchienati-Bosetta, Deputy CEO of Danone, reaffirmed the company’s long-term commitment to the African market.

She expressed pride in launching the advanced yoghurt production line, which is set to boost production capacity and continue delivering nutritious and high-quality products to consumers.

Christian Stammkoetter, President of Danone Africa, Middle East, and Asia Zone, also underscored the strategic importance of the investment, reflecting Danone’s vision for expansion in Nigeria.

Meanwhile, Kayode Adebiyi, Managing Director of Fan Milk Plc, described the new facility as a landmark achievement for the company.

He highlighted the state-of-the-art technology employed in the yoghurt production line, which promises efficient and sustainable production processes.

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