News

Danone to offload rest of Yakult Honsha stake

Most popular

Indonesia the wildcard in CCA buy - comment

Why rum should avoid gin's template for growth

Will Diageo earn its gin wings with Aviation?

The just-drinks analyst returns

What rum needs to do to recognise its potential

MORE

Danone is to sell its remaining stake in Japanese probiotic milk producer Yakult Honsha.

Danone sold most of its Yakult Honsha stake in 2018

Danone sold most of its Yakult Honsha stake in 2018

The divestment of the 6.61% stake, announced today, will bring to an end a shareholding arrangement that began in 2004. Danone started the process of exiting Yakult in 2018 when it sold the lion's share of a 21.29% stake.

According to Reuters, analysts estimate the remaining holding to be valued at EUR500m (US$590m).

Despite the impending sale, which has not been given an expected completion date, Danone and Yakult will continue to run their joint-ventures in India and Vietnam and other existing commercial partnerships.

Financial details will be disclosed at a later date, Danone said.

Yakult Honsha is best known for the Yakult fermented milk drink, which contains bacteria that promote gut health. Yakult is sold around the world and was first rolled out in the US in 2007. Yakult Honsha sells about 31m bottles of Yakult outside of Japan every day, according to the company's full-year results.

Danone's home market of Europe, however, has presented challenges to Yakult Honsha in recent years because of regulations governing the promotion of probiotic products. In FY2019-20, the company's European food & beverage sales dropped by 8%.

Commenting on today's announcement, Martin Deboo, an analyst at Jefferies, said: "We see this as a positive and shareholder-friendly move by Danone."

The Coca-Cola Co's hard seltzer launch is a statement of intent - Click here for a just-drinks comment


Related Content

Vietnam lines up final SABECO stake sale - report

Vietnam lines up final SABECO stake sale - report...

Molson Coors Beverage Co to launch probiotic seltzer & nootropic in non-alc push

Molson Coors Beverage Co to launch probiotic seltzer & nootropic in non-alc push...

Kirin set to offload Lion Dairy & Drinks

Kirin set to offload Lion Dairy & Drinks...

Majestic Wine

Majestic Wine "open to any permutation" of retail offload - CEO...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?