Bum in the yoghurt
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….