Food and Beverage Business
Finance

Danone Implements “Localisation” Strategy, Renaming Activia Dairy Brand in Russia

Danone is localizing its Activia dairy brand in Russia and renaming it as AktiBio, in a move that aims to cater to the preferences of the local market.

The change will only affect the brand name and packaging, while the production process, quality, and safety standards will remain the same. AktiBio will be produced in the same production facilities as Activia.

By localizing the brand, Danone plans to increase its investment in the development and support of the modern dairy category in Russia, which is expected to have a significant impact on the overall development of modern dairy products in the country.

According to Danone, AktiBio will enable the company to meet the specific needs and preferences of Russian consumers, supporting the growth of the dairy market.

Previously, Danone announced its decision to exit its essential dairy and plant-based business (EDP) in Russia due to the geopolitical situation. However, the company expects to maintain a presence in Russia for specialized nutrition products.

In recent news, it has been reported that Danone is in talks with potential buyers for its Russian assets. Sources suggest that Ekoniva, a Russian agricultural company, may be the likely buyer, with the transaction being facilitated through an intermediary company based in Dubai.

Danone, Ekoniva, and the intermediary company have not provided any official comments regarding these reports.

Although the sale of its Russian assets will result in a loss of approximately €1bn ($1.1bn), Danone aims to focus on its specialized nutrition products and other global markets for growth and profitability.

Overall, Danone has not provided any specific updates on its business in Russia in its 2022 annual report. The Russian market accounted for around 5% of the company’s total revenues in 2021.

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