The French food and drinks group Danone and the Italian mineral water company San Benedetto have set up a joint venture in Hungary in the form of a mineral water bottling plant.

With €5m in capital, the plant, called San Benedetto Magyar Viz, is being set up as a green field investment.

The plant and its products should be ready to launch before the end of the year, according to local press reports, after an equal investment of HUF2bn from both drinks companies.

The plans are to reach the number three spot on the Hungarian domestic market within two years. San Benedetto is already the market leader for imported mineral water.

This is the second joint venture between San Benedetto and Danone. The two companies already have a joint venture in Poland, called Polska Voda.