Free Essay

Danone&Wahaha

In: Business and Management

Submitted By vickyaibao
Words 1579
Pages 7
Danone’s entry mode in China
Basically, Danone chose joint venture as their entry mode at the early stage of entering Chinese market. More specifically, in 1996, they began a joint venture with the other two companies: Hangzhou Wahaha Group Corparation (Wahaha Group) and a Hong Kong corporation called Bai Fu Qin (Baifu), and formed five new subsidiaries in China. However, it should be noted that Danone and Baifu did not directly invest in the JV, but established Jin jia Investment, a new corporation in Singapore instead with Danone as their controlling shareholder. In this case, Wahaha Group held 49 percent of the entire shares of JV while Jinjia owned the remaining 51 percent.

The reasons why Danone decided to form a joint venture rather than a wholly owned subsidiary or other formats can generally be associated with the considerable benefits they may gain from it. Firstly, as a French company who has just entered the Chinese market for no more than 10 years since 1980s at that time, Danone’s knowledge about domestic market was still limited and may face a challenge if they run their business solely. Therefore, it is essential for them to learn from their partner in terms of related market knowledges, such as the competitive conditions, culture, political and business systems in China. Secondly, the partnership enabled Danone to share related costs and risks of developing a new product or process, in turn, led to the increase in their profit margin. It can be generally seen that Danone, as a multinational FMCG companies, may adopt global standardization as their international strategy, which places a high pressure on cost reduction. Evian, the global bottled water brand of Danone, can be a good illustration of this, as it enjoyed the same sales channel as Wahaha’s products in terms of the same position on the shelves. All these factors discussed above impel Danone to form a joint venture to facilitate their market access in China.

However, the formation of this JV also generated difficulties in following years. Like many other joint ventures has experienced (Volberda, R. et al.,2011), the large degree of autonomy Danone established in their partnership with Wahaha Group, which allowed the foreign enterprise to retain all their managerial and operating rights along with the brand name Wahaha, has made it more difficult for Danone to directly control subsidiaries. On this occasion, the management power of JV was gradually delegated to Zong Qinghou, who is the founder and owner of Wahaha group, as he appointed the majority of management positions to his own family members and employees from Wahaha. This also underlies subsequent conflicts about control of JV, which would be explained in more detail later. In addition, as their cooperation was constructed based on joint venture rather than wholly acquisition, it left Wahaha group being independent without Danone’s interference in daily management within organizations, and thus, offered them a chance to develop subsidiaries not associated with Danone from the beginning of partnership in 1996, that is, their nonjoint ventures.

Also, as stated by Volberda, R. et al. (2011), the shared ownership arrangement in JVs may trigger conflicts between firms, if they have different opinions about what strategy should be chosen for the JV. For this case, it can be seen that Danone was in pursuit of efficiencies and profits that comply with its global object, while Wahaha intended to improve their technology to a large extent. For example, in order to expand markets and meet increasing production needs, Wahaha proposed to introduce new production lines for its JV via extra investment. This was rejected by Danone, as they insisted Wahaha to keep outsourcing to product processing suppliers considering the relatively lower costs. After that, as Wahaha realized there were still several drawbacks in adopting outside suppliers, they then build up their own nonjoint ventures above-mentioned to improve it, which implied the disputes between the two investing firms later.

However, Danone’s entry mode has changed over time to some extent. They bought all the shares of Baifu owned in Jinjia, then becoming the 100 percent owner of Jinjia and therefore owning 51 percent of shares in JV simultaneously in 1998. This action turned the role of Danone in JV from a minority shareholder into a major one, and helping them acquire legal control over JV due to its right to decide the board of directors. Besides, Danone has also conducted acquisition by purchasing ownership stakes of several other leading Chinese beverage companies during the 10 years cooperation with Wahaha, including 98 percent of Robust Group, 54.2 percent of Shenzhen Yili Mineral Water Company and 50 percent of Shanghai Maling Aquarius Co., Ltd., etc.

Danone & Wahaha’s contributions and related difficulties

Actually, the trademark was Wahaha’s only contribution to the JV, whereas Jinjia (containing Danone and Baifu) contributed RMB500 million in cash. Those investment funds allowed Wahaha to purchase advanced production lines highly in need from all over the world to improve their production efficiency.
However, when it comes to the ownership and use of trademark “Wahaha”, various problems occurred between these two partners. Basically, Danone and Wahaha have signed three agreements related to the brand name “Wahaha”. When he JV was created, they signed a trademark transfer agreement, aiming to wholly transfer the "Wahaha" trademark to the JVs. At that time, Wahaha Group promised not to use this trademark for any independent interests or offer it to any other entity. Nevertheless, this trademark transfer contract eventually did not get the approval from the local trademark office, who claimed that the trademark is a state-owned property, leading to their second attempt to conduct an exclusive licensing contract for trademark. Likewise, Wahaha was still not allowed to use the trademark for their own business, but has the ownership of the Wahaha trademark at this time. It means that Wahaha has never transferred the ownership of the trademark to the JV and therefore did not realize their obligation for capitalization of the JV. However, no further JV’s legal document has been revised clearly for this changed situation until 2005, which indicated the difficulty for Wahaha in their conflicts with Danone concerning the use of “Wahaha” trademark in their nonjoint venture subsidiaries.
More specifically, the Wahaha group continuously established numbers of companies selling the same products as the JV and used the trademark of Wahaha since 2000. Products from both the non-JV firms and the JV were applying identical sales channels which are all actually controlled by Zong. However, it should be noted that those non-JV companies’ right of using Wahaha’s trademark had not been formally granted within the JV, until they signed an amendment agreement to the licensing contract confirming their ownership of the trademark and right to use it for non-JVs. This five-year gap clearly offered Danone a reason to challenge the Wahaha group. Therefore, in 2007, after the request for a 51 percent ownership interest in the non-JVs was rejected by Zong, Danone initiated a series of lawsuits in public, claiming that the existence of Wahaha Group’s non-JVs and their illegal use of "Wahaha" trademark has been severely against the noncompete clause and Danone’s interest. Danone and Wahaha’s roles, responsibilities & objectives

According to Volberda, R. et al. (2011) ,it is clear that the joint venture of Danone and Wahaha group can be considered as an example of strategic alliance, which has been defined as cooperative agreements between independent companies. However, in order to manage this collaboration and make the alliances work, firms need to fulfil their responsibilities in terms of logically structuring the alliances and carefully manage it.
More specifically, with refer to the case in the context of alliance structure, Wahaha should be blamed for not expecting the change circumstances, as they improperly considered themselves as the majority shareholder with absolute control over the JV. Therefore, they became quite passive while losing their majority control over the JV due to Danone’s wholly acquisition of Baifu. In fact, this was supposed to be recognized by Wahaha Group before they decided to form the joint venture, and then the related contractual safeguard may be established in advance to prevent such difficulties. Additionally, the trademark issue mentioned above could also be avoided if Wahaha create related tight legal agreements timely with Danone, right after their strategy changing from original trademark transfer to trademark licensing, rather than directly setting up non-JVs and use the trademark regardless of supporting JV documents.

As for Danone, they failed to build mutual trust with Wahaha during the whole cooperation. As stated by Nair A.S. et al. (1998), trust play an important role in corporate partnership, especially for Chinese companies like Wahaha Group. However, Danone’s acquisition of Baifu in 1998 made themselves became the majority shareholder, but also produce considerable dissatisfaction on Wahaha Group. From them on, this action has seriously damage the trust of Wahaha on Danone, as Wahaha group felt that they were misled from the beginning. Moreover, in 2000, Danone even bought 98% share of Rubust, which was considered as the biggest competitor of Wahaha, regardless their partner’s interests. All these moves adopt by Donone has accelerated the collapse of their partnership, as the trust between two parties has been damaged continuously without remedial efforts.

Volberda, R. et al. (2011): Strategic Management: Competitiveness and Management, Cengage Learning, Hampshire: United Kingdom. ISBN-13: 9781408019184 / ISBN-10:
1408019183.

Ajit S. Nair and Edwin R. Stafford (1998): China Strategic Alliances in China: Negotiating the Barriers

Similar Documents

Free Essay

Danone and Wahaha

...Introduction: In 1996, Danone, a multinational foreign company entered into a joint-venture contract with a local Chinese beverage company named Wahaha in order to better access to Chinese market. The form of the joint venture was a great success at the beginning stage, with both parties gained substantial benefits from the relationship. However, in 2001, conflict arise when Wahaha Group created a series of Non-joint venture companies that sold the same product as the joint venture and use the Wahaha trademark. Since then, a long time dispute continued around the ownership of the “Wahaha” trademark, the rationality of the existence of non-joint ventures and the non-compete issue. Several lawsuits were carried but all ended in Wahaha’s favor. Eventually, Danone relinquish the claims and secede from the joint venture by selling its 51 percent share to the business’s Chinese partners. Main body With a global standing and desire for international expansion, Danone entered the Chinese market in the late 1980s. Compared with many developed countries where markets almost reach saturation, China has a promising market with cheap labor which provide a good opportunity for Danone to further develop. At early stage, Danone entered China through forming a joint venture with the local enterprise Wahaha. There are three main reasons for why Danone use the joint venture mode instead of using other modes to enter China. First, Danone can benefit a lot from Wahaha’s knowledge of local......

Words: 1773 - Pages: 8

Free Essay

Danone vs. Wahaha

...negotiation between Danone and Wahaha (2007-2009) On the 30th of September 2009 an almost 12 year relationship between French multinational enterprise Danone and Chinese Wahaha group ended by Danone withdrawing from the IJV (International Joint Venture) for monetary settlement. This report analysis the negotiation journey of the dispute and tries to classify the different negotiation steps based on the challenges of negotiating business deals in China. As a tool IRENEs framework on “Who/ How/ What” is used. Based on the analysis of the negotiation and the review of the cultural differences between western oriented and Chinese businesses suggestions will be made what could have been done differently by Danone. Overview of the Situation between Danone and Wahaha early 2007 The multinational Danone Group SA based in Paris in France is one of the biggest players on the global dairy product and bottled water markets. They are active on all five continents and the net sales in 2007 was more than 12 billion €. The Hangzouh Wahaha Group Co., Ltd. is a company that has grown from a small business, selling drinks to school children to become one of the most important and largest Chinese bottled-water companies already in 2007. Although it is difficult to find detailed financial figures on Wahaha it can clearly be stated that in 2007 the Group was much smaller than Danone. At that time Wahaha contributed approximately 6% of Danone’s profits. Wahaha was......

Words: 4670 - Pages: 19

Premium Essay

Danone and Wahaha 'Failed' Joint Venture

...A ‘failed’ Joint Venture between Danone and Wahaha French’s Danone and China’s Wahaha had been a very successful joint venture in China. Danone’s capital, expertise & technology know-how, combined with Wahaha’s huge local presence in the market had seen the company soared in the food & beverage industry. It was until then when Danone accused its partner, Zong, founder of Wahaha of illegally selling Wahaha brand products using a distributor not selected by the joint venture agreement. Danone also filed for arbitration (appoint an official body to settle the dispute) to resolve the trademark dispute. Despite holding on to the majority stake of 51% in the Wahaha brand, Danone did not take any action until now because it needed the Wahaha brand as much as it needed Zong. Zong and his management were the driving force for Wahaha and Danone’s efforts in sending its own executives were futile. The dispute highlighted a key issue which many foreign investors have long grappled in China due to the lack of respect and understanding of legal agreements in the country. In China where informal institutions play a larger role than formal institutions, Danone had used the wrong approach to resolve the dispute and had lost the support of the people in China. Was joint venture appropriate for Danone to enter China? Joint venture allows Danone which is a multi-national company based in France to tap into the lucrative market in China. At the time of the joint venture, China......

Words: 812 - Pages: 4

Free Essay

Danone En Chine

...China By Shangguan Zhoudong (chinadaily.com.cn) 2007-06-15 Brief introduction Group Danone is one of the most famous food and beverage groups in the world with its headquarters in Paris and 90,000 staff members worldwide. Group Danone is a Global Fortune 500 company with a long history and large size. Danone develops its business across over 120 countries focusing on three core categories: fresh dairy products, biscuits (in which it ranks second worldwide) and beverages (in which it ranks first worldwide). Founded in 1966, Danone has followed an active expansion strategy throughout the world since the 1990s. In less than 40 years, Danone has become a giant of the food industry, owning many famous international brands such as Danone, LU, Evian, and more. Since the end of the 1980s, Danone began to develop the production and business in China extensively by investing in building factories. Now, the main business of Danone in China concerns yogurt, biscuits and beverages. Danone has 70 factories in China, including Danone Biscuits (in Shanghai, Suzhou and Jiangmen), Robust (in Guangzhou), Wahaha (in Hang Zhou), and Health (in Shenzhen). The products are not only sold in China, but also exported to different countries. Four brands under Danone Danone: the leading brand worldwide for fresh dairy products; Danone represents almost 20 percent of the international market. Danone is present in 40 countries worldwide. Evian: the best selling mineral water brand, with......

Words: 3791 - Pages: 16

Free Essay

Danone Case

...Paris Williams Danone Case What’s Danone? Groupe Danone is a public French multinational corporation. It is known for fresh dairy products, bottled water, and medical nutrition. Subsidiaries: Many of Danone’s subsidiaries are companies that manufacture specific products for specific markets. For example, The Dannon Company is a subsidiary of Groupe Danone operating in the United States primarily under the brand name Dannon. Affiliates: Multiple companies’ supply components go into the final goods sold under Danone Groupe brand names. These companies have a presence in the industry already, make packaging materials, and/or produce raw dairy products. In the case study, Danone formed an affiliation with Wahaha Group to get a better foothold in the expanding Chinese market. Cultural: In Spain and Italy Danone established relationships with local suppliers. In Eastern Europe Danone took over local suppliers to exploit growing demand for fresh dairy products. Fewer Chinese citizens have refrigerators to hold fresh dairy products. Administrative Danone rarely sends executives (or resources) to their joint ventures, but allows them to be autonomous. Danone and Wahaha (Chinese) joint venture Danone has been accused of trying to become a monopoly in the Chinese market. Human Resources The Danone Way Programme: Embodies Danone’s commitment to combining business success and attention to people and the community Human resource policies represent a dual commitment to success and......

Words: 439 - Pages: 2

Free Essay

Danone's Wrangle with Wahaha

...Wrangle With Wahaha Isabella Tennant – 300276839 Danone began in Spain as a small yoghurt stand. It was successful, becoming the first industrial manufacturer of yoghurt. The Danone business kept expanding globally, having a presence in all continents. Danone began to sell many different products early on. In 1997 the Danone group decided to focus only on three worldwide business lines. These were Fresh Dairy Products, Beverages, Biscuits and Cereal Products. This focus meant that Danone’s human and financial resources were freed up allowing for swift expansion into new markets in many continents, such as Asia. Danone faced challenges while operating in China due to a lack of market knowledge, such as the challenges with Robust. Robust, the second largest company in the Chinese beverage industry was purchased by Danone in 2009. Once purchased, Danone decided to manage Robust directly instead of using the original management. The new management was not familiar with the Chinese Beverage Market and Robust struggled, resulting in its milk and tea products almost disappearing from the markets. Wahaha was a company established by Zong Qinghou in 1987 that sold a nutritional drink for kids. A joint venture was formed in 1996 between Danone Group and Wahaha Group. The structure of the joint venture (JV) consisted of three participants: Hangzhou Wahaha Food Group, Danone Group and Bai Fu Qin (Baifu). The Wahaha Group owned 49% of the shares. Whereas, the Danone Group and......

Words: 990 - Pages: 4

Free Essay

Body Shop

...L’Oreal did. She was very active with charity for children and other works. Sales from The Body Shop went down south. The Beginning- Mrs. Anita had several jobs before she decided to create The Body Shop. In 1976 Mrs. Anita founded The Body Shop and it grew rapidly over the years. After being the CEO of her company in May 1998, Anita Roddick stepped down and appointed Patrick Gournay as the new CEO. Her reason for stepping down was she had gotten bored with basic retail discipline with distribution and would rather spend time with Dalai Lama. Mrs. Anita stated, “Titles are meaningless and tomorrow’s job is exactly the same as yesterday.” Patrick Gournay was an experienced international business manager and had worked 26 years with Groupe Danone, who was a multi- product food...

Words: 349 - Pages: 2

Premium Essay

Cannon Company-Case Study

...Case Study: The Dannon Company OL 690: Responsible Corporate Leadership Southern New Hampshire University March 25th, 2015 Introduction Danone, the parent company and U.S. subsidiary of Dannon, was founded in Barcelona Spain in 1919 by Isaac Carasso (Marquis, Shah, Tolleson, & Thomason, 2011). Isaac had the goal of developing a yogurt for more than the purpose of taste, but with additional inherent health benefits (Marquis, et al., 2011). The health benefits were based on the use of pure lactic ferments, which were initially prescribed by physicians due to their proven ability to help treat intestinal disorders (Marquis, et al., 2011). It was because of Carasso that consumers could have the added benefit of treating their intestinal disorder while nourishing their bodies. Daniel Carasso, Isaac’s son, was brought into the business and ultimately became CEO in 1939 after Isaac’s death (Marquis, et al., 2011). Prior to his father’s death, Daniel was able to take Danone to another level in 1929 when he founded it in Paris (Marquis, et al., 2011). Due to the extensive amount of competition in the yogurt business, Daniel leveraged the focus on health to differentiate Danone from the competition (Marquis, et al., 2011). After his father’s death, Daniel merged with two notable organizations in 1967 and 1973, Gervais and Boussois-Souchon-Neuvesel (BSN) respectively (Marquis, et al., 2011). These mergers resulted in rapid expansion throughout Europe, a newly named......

Words: 2256 - Pages: 10

Free Essay

General Mills

...General Mills, Inc Summary General Mills is an American company that specializes in the production, packaging and distribution of food products. The company has managed to acquire a significant share of the market through mergers and acquisition. Currently, the company controls about 31 percent of the market. The industry is characterized by a moderate to low level of competition. The main competitors include Groupe Danone, Kellogg, and Kraft. Each company is able to retain its customer base since consumers tend to consume foods they are used to and hence strong brand loyalty. The company’s competitive advantage lies on its broad range of products and high level of innovation. High level of innovation has enabled the company to meet the changing customers’ need effectively while minimizing the operational costs. By providing a wide range of products, General Mills has managed to minimize risks. General Mills basically targets three groups, which include; baby boomers, Hispanics and the Minneapolis population. General Mills, Inc General Mills, Inc is an American company that is headquartered in Minneapolis in Minnesota. The history of the four industry traces back to the 1850’s and General Mills was founded in 1928 by James Ford Bell, who facilitated a merger between several milling companies in the region. The company is principally involved with the production and distribution of consumer foods. The company provides a wide range of products including......

Words: 625 - Pages: 3

Free Essay

The Dannon Company

...manufactured the first Danone yogurt product. Shortly thereafter, Isaac began selling yogurt to pharmacies in Barcelona, Spain while targeting children with digestive issues. Ten years later in 1929, Isaac’s son Daniel Carasso founded Danone in Paris, France. In order to differentiate his business from the competition, Daniel used the health advantages of Danone yogurt as a basis for his strategy (CSR). Dannon is a U.S. subsidiary of Danone, which is among the top tier in manufacturing and distributing dairy products and beverages internationally. Dannon has experienced a great deal of success in the industry as it is currently the leading brand of yogurt in the world. With approximately 1,300 employees, Dannon offers roughly 100 different types of dairy products to consumers. Currently there are four plants across the United States including White Plains, NY, Minster, OH, Fort Worth, TX, and West Jordan, UT. Aside from Dannon’s successl in its distribution of product, its core values of nutrition and health, nature and people help to bring satisfaction to Americans across the nation (CSR). Danone’s mission statement, “To bring health through food to as many people as possible,” signifies the social values of the company and commitment to its customers (Case Study). Danone’s social responsibility is vital to the purpose of the organization and is broken down into three main areas: Nutrition and Health, People, and Nature. Nutrition and Health The Danone......

Words: 518 - Pages: 3

Premium Essay

The Dannon Company

...THE DANNON COMPANY: MARKETING AND CORPORATE SOCIAL RESPONSIBILITY (A) Question 1) Should Dannon proactively communicate its CSR activities to the public? Discuss pros and cons of your decision. Answer: Dannon should not communicate its CSR activities to the public. Dannon and Yoplait are the two leading company in US with Yoplait have 35.4% market share and Dannon is second with 28.9% market share. Dannon is not too far behind Yoplait and so they don’t need to do much to become the number 1 player in America. Also, the consumers can gather more knowledge about the CSR activities of Dannon through the Dannon cares section on the website and the 16- page Corporate Social Responsibility Overview. So, it is not that the consumers are fully unaware of the company’s CSR activities. The pros of not communicating the CSR activities are: * When they will spend their marketing budget on TV ads, in-store shopper marketing tactics, branded websites etc. people will become more aware about the high health benefit products that they provide and thus increase the consumption. * Communicating its CSR activities to the public will not be of much benefit because consumers are more concerned about how much satisfaction the product can provide and how it impacts their life. * As the consumption increases, the loyalty will increase and there will be long-term sales impact. * Sometimes the consumers...

Words: 822 - Pages: 4

Free Essay

Grameen Sokti Doi

..._____________________________________________1.0 Executive Summary This research purposes to find out the problems in decreasing sales of Grameen Denone Shokti Doi. Following the social business concept, French based food and beverage company Denon started its operation by making an agreement with Grameen group which is named as Grameen Danon. Grameen Danon launched in 2006 and they officially launched their 1st package of product named Shokti doi as the main concern of Shokti doi is to provide nutrition to the poor children of Bangladesh which can able to fulfill their nutritional requirements. As they started their business they have faced lots of obstacles such as the lack of proper distribution, non-standardized management along with localization problem. Also, the distribution through women raised the fact of cultural barriers. The unplanned product and overstated pricing strategy also become a fact of their market loss. Various key factors like Product, Price, Promotion, Proper segmentation and target market are also play a big role in terms of generation revenue for n organization. Based on our research objectives and other related subjects of the research, we developed few hypotheses for it, which we have tested by our primary and secondary data that we have collected by survey. The data we have collected can be divided into two categories are Primary Data and Secondary Data. Primary data refers to the data collected from the survey that we have conducted among......

Words: 8780 - Pages: 36

Free Essay

Zuby

...Grameen Danone Foods Hiromi Tsuboi** Abstract Bangladesh has made significant progress in the area of human development for the last three decades. According to the human development index (HDI), Bangladesh’s HDI increased from 0.347 in 1975 to 0.547 in 2005. However the country’s HDI rank in 2005 was 140 out of 177 countries. Forty-eight percent of children under the age of five were underweight. They also lack access to healthy living conditions. In order to make the environment surrounding children healthier in rural Bangladesh, Grameen Danone Foods Ltd. launched the production of yogurt in 2006. The mission is to reduce poverty by providing a unique proximity business model that will provide daily healthy nutrition to the poor. This report first presents an overview of Grameen Danone Foods Ltd., and then, through fieldwork, examines how the lives of rural people have been improved by its activities. 1. In order to make the environment surrounding Introduction Bangladesh has made significant progress in the children healthier in rural Bangladesh, the Grameen area of human development for the last three decades. Bank, Nobel Peace Laureate 2006, proposed to form a These achievements can be captured by the human joint venture food enterprise between the Grameen development the Group and the French food company Groupe Danone. In enhancement of people’s quality of life through 2006, a joint company called Grameen Danone......

Words: 2130 - Pages: 9

Free Essay

Grupo Danone

...HECHOS / LINEA DE TIEMPO | Grupo Danone se instaló en Argentina en el 1994 al adquirir Bagley, una empresa productora de alimentos para consumo masivo, Bagley producía Golosinas y Galletitas y era la segunda empresa más grande de Argentina (Terrabusi era la primera más grande, la cual fue adquirida por Nabisco en 1995), Grupo Danone quería alcanzar el liderazgo mundial en sus 3 sectores: Aguas, Productos Lácteos y Galletitas. La Misión del Grupo Danone como empresa era ¨Ayudar a la gente en el mundo a crecer, vivir mejor y aprovechar más la vida a través de alimentos más ricos, más variados y más sanos¨. En 1996 Grupo Danone realizó un Joint Venture con Mastellone Hermanos, Eran los líderes en el sector de Lácteos frescos en Argentina con su marca Serenísima, Al momento de realizar este convenio Grupo Danone relanzó sus marcas: Ser (Yogures Bajos en Calorías), Serenito (Postres Infantiles), Casancrem (Quesos Untables), Cindor (Leche Chocolatada). y Lanzó nuevas marcas: Yogurisimo (Yogur Entero), Actimel (Leche Fermentada – Innovación), Danonimo (Alimento Para El Crecimiento Infantil – Innovación), En 1996 Grupo Danone adquiere a Villa Del Sur, una de las principales marcas de Agua Mineral principalmente posicionada como agua Familiar, ofrecida en envases grandes y muy relacionada con imágenes del campo, granjas y mares. En 1999 Grupo Danone adquiere Villavicencio, otra de las marcas principales de Agua Mineral la cual era el agua Premium en el mercado masivo con la más......

Words: 1206 - Pages: 5

Free Essay

Ibt Project

...936 Groupe Danone - issues regarding its policies 1. Company’s background The company has its roots in Spain, where Danone was founded by Isaac Carasso in 1919. Having previously lived in the Balkans where yogurt was a dietary staple, Carasso decided to introduce this healthy product in Barcelona. He opened a small yogurt business named "Danone," meaning "Little Daniel" after his son. Carasso was aware of scientific advances that had been made with fermented milk by Elie Metchnikoff at the Pasteur Institute in Paris. He perfected the first industrial manufacturing process by combining the traditional method of making yogurt with the pure cultures that had been isolated in Paris. In 1923, the first Danone yogurts start to be sold in pharmacies as doctors recommend it for its therapeutic qualities. The younger Carasso, Daniel, learned the family business in Spain and decided to establish Danone in France in 1929. In 1949, the yogurt is almost a dairy product. The porcelain “envase” is substituted by the one made of glass. This innovation makes it easier to popularize the yogurt. In 1968, Danone starts its first TV campaign. In 1985, Danone creates its first “low fat yogurt” called “Danone Desnatado”. In 1992, Danone was the Official Sponsor of Barcelona's Olympic Games. “Danone Institute” is created in 1993. Its main objective is to research and develop healthier and better products for the company. 2. Mission, values and corporate philosophy Danone......

Words: 2028 - Pages: 9