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Launch of a joint venture between Danone and in Europe
France
Friday 02 April 2010
FJ
Grouping of 2 leaders of the marketing for the fruit-based drinks in Europe.
Danone announced a joint venture with Chiquita Brands International Inc to market fruit beverages based on Chiquita's Just Fruit in a Bottle platform in Europe.
Chiquita's partnership with Danone establishes an alliance between two companies whose values and product portfolios represent a rich legacy of bringing branded, innovative, healthy foods to consumers around the world.
Chiquita will receive a one-time cash payment for a 51 percent interest in the joint venture and license its trademark to the new entity and expects the transaction to be immediately accretive to earnings. Full financial terms have not been disclosed. The agreement will be fully executed once approved by European regulatory authorities and is expected to be completed in the first half of 2010.
In only four years, Chiquita's Just Fruit in a Bottle product has become a market leading brand of fruit smoothie in Europe with distribution in 12 countries, generating approximately euro 20 million of sales in 2009. The headquarter will be in Paris and Danone will be the exclusive distributor of Chiquita Just Fruit in a Bottle and all future Chiquita branded beverage products in Europe.
Under the agreement, Chiquita and Danone will become financial and operational partners in a new joint venture managed by Danone and headquartered in Paris as the exclusive distributor of Chiquita Just Fruit in a Bottle and all future Chiquita branded beverage products in Europe. Chiquita will provide local sales, marketing and supply chain services.
"Chiquita's partnership with Danone leverages both firms' complementary strengths and will enable us to expand Just Fruit in a Bottle much faster and more efficiently across Europe, substantially increasing revenues and profitability," said Fernando Aguirre, chairman and chief executive officer.
Source : Market Watch
