Danone and Yakult boost partnership

THROUGH an amended Memorandum of Understanding, Danone and Yakult Honsha Co, Ltd. formalise their continued promotion of probiotics as part of a balanced diet, through the jointly created Global Probiotics Council.

Danone is a French manufacturer of water, biscuit and dairy, whilst Yakult produces probiotic beverages and is listed in Japan. Collaborating since 2004, they intend to expand the Ishoku Dogen programme designed to deepen the understanding of the link between diet and health. From a commercial perspective, the partners will study the feasibility of new collaboration projects such as the distribution of Yakult’s products by Danone in European markets where the brand is not currently engaged in substantial business, with Spain as an initial test market. However, Danone further announced it will sell part of its 21.29% stake in Yakult. The intended divestiture was carried out through a market transaction launched 14 February by Yakult and expected to settle in March.

Yakult, which manufactures probiotic beverages and is listed in Japan, also announced a JPY 36 billion share buyback programme in which Danone will participate.

Danone targets a shareholding of approximately 7% of Yakult’s total outstanding shares following the completion of the transaction, subject to market conditions.