Danone has signed an agreement to sell its Swedish probiotic fruit juices brand ProViva to fellow dairy peer Lactalis for an undisclosed sum.
The deal, signed with ProViva’s minority owner, dairy cooperative Skånemejerier Ekonomisk förening, also includes the sale of the Österlenmejeriet factory in Lunnarp, Skåne County, south-eastern Sweden.
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A joint statement from Danone and Lactalis said the deal was “in line with Danone’s strategic ambition to strengthen its portfolio focus”.
The decision to sell the brand was driven by “an adjustment of Danone’s product portfolio with a greater focus on core products and the unused production capacity in the factory”, the statement added.
The deal is anticipated to close in the first half of next year.
ProViva produces probiotic fruit juices for the Swedish market, which come in flavours such as raspberry, rosehip, blueberry and blackcurrant.
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By GlobalDataJust Drinks has asked Danone and Lactalis to confirm if ProViva products are also sold outside of Sweden.
If the transaction is approved, the ProViva brand will sit under Skånemejerier, a subsidiary of Lactalis based in which produces cheese, yoghurt and milk products for the Swedish market.
Commenting on the purchase, Cecilia von Perglas, CEO of Skånemejerier, said: “The acquisition of the ProViva brand and Österlenmejeriet is a strategic step for our Swedish operations.
“The strong ProViva brand will complement our product portfolio and strengthen our presence in Sweden. I am pleased to welcome over 80 employees to our 800 employees in Sweden.”
General manager of Danone’s Nordics and Baltics market Ignasi Argente said the business was “pleased to have reached this agreement with a local, well-known buyer with strong roots in Skåne.”
Danone bought a controlling stake in ProViva from Skånemejerier in 2010. Under the agreement, the Activia brand owner at the time was to buy 51% of the equity in the brand with the option to purchase an additional 25% in eight years and the final 25% in 11 years’ time.
In 2020, Danone invested Skr140m (then $16.9m) into its Lunnarp facility, which at the time produced both ProViva and Alpro products. Just Drinks has asked Danone whether the facility currently produces any products other than ProViva.
The Lunnarp site is Danone’s only factory in Sweden.
