FRANCE: Danone stems bottled water sale talk
Danone prizes Evian as a jewel asset
Danone's CEO has reportedly said that the French group is not seeking to sell its bottled water business, but it is negotiating a new distribution set-up in Japan.
Franck Riboud was quoted in the Financial Times newsaper today (22 November) as saying that Evian water is part of "Danone's DNA". Bottled water will remain a part of the group's business, he said.
His comments will comes as little surprise to many analysts, who have been sceptical of recent reports that Danone has been seeking to offload the water division to one of Japan's major drinks firms.
"I don't believe it will happen," one Paris-based analyst told just-drinks at the time. "Mineral water sits very nicely within Danone's strategic emphasis that its products are beneficial to good health and well being," he added.
Instead of a sale, Riboud said that Danone is seeking to sign a fresh distribution agreement in Japan, where bottled water sales have suffered alongside sluggish consumption in the wider drinks market.
Kirin Holdings may have a headstart due to its existing existing distribution deal for Danone's Volvic water in Japan. Equally, however, the French firm may decide on a new beginning. Kirin recalled half a million bottles of Volvic in 2008 after consumers complained of a bad odour upon opening the water.
- Remy, dead cats and the power of China's new year
- just the Facts - Top 20 US Beers by Value, Volume
- Will Lucas Bols' IPO Bring Much-Needed Stability?
- Price drops would damage our DNA - Remy Cointreau
- Focus - Remy Cointreau's YTD Performance by Brand
- Maxxium UK head to depart for Edrington role
- Diageo speaks out over supplier contract changes
- Diageo inks UK distribution deals
- Brown-Forman appoints Jack Daniel's president
- Diageo's United Spirits stays in red in YTD
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review