Bum in the yo­ghurt

Finweek English Edition - - COMPANIES&MARKETS -

EARLY LAST YEAR Finweek noted what a sweet deal dairy group

had pulled off when it sold its 45% hold­ing in the Clover-Danone joint ven­ture back to food multi­na­tional Danone for around R1,1bn. Not only did Clover cash in a JV ar­range­ment at well above the book value (R600m in the an­nual re­port) but it still ben­e­fited from an ar­range­ment to pro­vide raw milk and dis­tri­bu­tion ser­vices to Danone for the next few years.

If there was a draw­back, Clover did lose a size­able foothold in the dairy prod­ucts mar­ket (with the DanoneClover JV hold­ing an im­pos­ing 44% mar­ket share in the yo­ghurt cat­e­gory). But those clever cats at Clover will still get to cream off that mar­ket share with news that next month Danone will out­source all its mer­chan­dis­ing ser­vices to Clover. Quite un­be­liev­able, re­ally….

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.