Danone announces joint venture with Chiquita

Danone has announced that it will start a joint venture with Chiquita Brands International to market fruit-based drinks in Europe.
The joint venture, which is based on Chiquita’s Just Fruit in a Bottle product, will provide Danone with a platform to explore and develop fruit-based products, adding to its existing portfolio of healthy fresh dairy products and extending its potential for growth in Europe.
Under the terms of the joint-venture agreement, Danone will pay an undisclosed amount in cash to Chiquita for a 51% interest in – and management control over the joint venture.
The transaction is subject to customary regulatory approvals and is expected to be completed in the first half of 2010.
Over the last four years, Chiquita’s Just Fruit in a Bottle product has become one of the leading fruit smoothie brands in Europe with distribution in 12 countries, generating approx EUR20 million sales in 2009. The new joint venture, which will be headquartered in Paris, will be the exclusive distributor of Chiquita Just Fruit in a Bottle and all future Chiquita branded beverage products in Europe.
Bernard Hours, co-chief operating officer of Danone, said: “We are excited to partner with Chiquita in providing consumers with healthy, fruit-based, fresh products. The combination of Danone’s leading European footprint of healthy products, together with Chiquita’s operational expertise in fruit-based drinks creates exciting long-term growth opportunities.”