Danone to expand footprint in China as Sino-French ties reach new milestone

The investment from France in China increased by 84.1 percent in 2023, indicating robust trade relationship and the immense potential between the two nations, the latest data from the Ministry of Commerce show.

Global food and beverage player Danone is a witness and beneficiary of the upbeat trend. As China and France celebrate the 60th anniversary of their diplomatic relations, Bruno Chevot, president of Danone China, North Asia and Oceania, called it a "significant milestone."

Since its entry into the Chinese market in 1987, China has become Danone's second-largest market, and the company is poised for a promising future in the Chinese market.

Operating 10 factories and employing over 8,000, about 10 percent of Danone's overall turnover is generated in the Chinese market, highlighting its significant presence and contribution to the company's success.

"This partnership between our nations hasn't just facilitated the entry of Danone's products into China, it has also strengthened our determination to deepen our footprint and make China one of Danone's largest markets in the world," Chevot said.

Chevot said the everlasting friendship between China and France will continue to unlock growth opportunities for enterprises in both countries.

"Danone eagerly anticipates catalyzing our growth within the robust and dynamic Sino-French strategic partnership," he added.

Since 2020, Danone has made significant investments in China to strengthen scientific research and advanced nutrition. The establishment of the Danone Open Science Research Center in Shanghai stands as a notable milestone. Danone has expanded its advanced medical nutrition production site in Wuxi, Jiangsu province, and invested in three specialized nutrition factories at Qingdao in Shandong province, Changsha in Hunan province, and Shanghai.

"In recent years, our commitment to 'innovate in China, produce in China' has accelerated, harmonizing seamlessly with China's quest for quality-driven development," said Chevot.

The accelerated investment is a proactive response to the evolving local consumer trends. Chinese consumers are displaying a heightened enthusiasm for science-based and sophisticated health innovations. The Nielsen IQ Global Consumer Outlook 2023 reveals that 47 percent of the surveyed Chinese consumers consider health as their top priority of expenditures in 2023, the highest ratio among all spending areas.

In light of this robust market dynamic, the food industry behemoth is committed to adapting and enhancing its product portfolio to align with the changing consumption patterns and contribute to the "Healthy China 2030 initiative". The firm plans to fortify its production capabilities in avenues such as healthy hydration, healthy aging and medical nutrition, while leveraging local research centers and factories for cutting-edge research and development of innovative nutrition solutions.

On top of achieving commercial success in China, Danone has also actively leveraged the platform of Sino-French cooperation.

During French President Emmanuel Macron's state visit in 2023, the China Association of Enterprises with Foreign Investment and Danone China inked a memorandum of understanding. The agreement aimed to continue supporting the Ministry of Commerce in its efforts to develop rural areas in China. Danone is dedicated to give the country a leg up on poverty alleviation and rural revitalization with funds, products and services worth a total of 23 million yuan ($3.21 million).

2024 will witness a variety of national-level celebrations for the 60th anniversary of Sino-French diplomatic ties. France will become the country of honor at the 7th China International Import Expo (CIIE), where Danone has been a participant for six consecutive years with nearly 100 new products introduced to the local market. According to Danone, it will continue its active engagement with this national platform and bring more advanced products from around the globe to the 7th CIIE.