In a bid to strengthen its position in North Africa and the Middle East, Groupe Danone has acquired the Egyptian yogurt producer Olait. In a separate move, the French food producer has signed a new partnership agreement in Tunisia for the development of biscuit business in Algeria.

18 Oct 2005, 19:46 GMT - Created in 2003, Olait makes plain and fruit-flavored yogurts and dairy desserts at its production plant near Cairo. The company’s products will be marketed under the Danone brand in the near future.

The Egyptian market for fresh dairy products, representing some 110,000 tons in 2004, is growing at an annual rate of 4.5%. Danone said prospects in the country are very promising given average per-capita consumption of only 1.5kg a year, compared with 23kg in Western Europe.

Separately, Danone has signed a new agreement with Tunisian company Sotubi, its partner since 1998, for the development of biscuit business in Algeria. Within the new joint venture, Danone will be responsible for operational management, while Sotubi will contribute its knowledge of market and distribution channels. The new company will be investing in the construction of a new plant in Alger within a few months.

Source : Datamonitor Newswire