New Tool: PMMI ProSource
Check out our packaging and processing solutions finder, PMMI ProSource.

Danone Offloading Essential Dairy and Plant-based Business in Russia

The decision to initiate a process to transfer the effective control of the business could result in a write-off of up to $978 million.

Danone Logo

Danone has announced it is in the process of offloading its Essential Dairy and Plant-based (EDP) business in Russia, which represents approximately 90% of its operations in that country. The decision could result to a write-off of up to $978 million.

Danone did not disclose to whom the business would be transferred, and the company could still retain a stake in the dairy business. Danone also will retain its infant nutrition unit.

In a press release, Danone stated that considers that its decision to initiate a process to transfer the effective control of its Essential Dairy and Plant-based (EDP) business in Russia would be the best option to ensure long-term local business continuity, for its employees, consumers, and partners. Once closed, the transaction, which will be subject to regulatory approvals, would result in the deconsolidation of Danone’s EDP Russia business.


Watch video   unPACKED with PMMI: Next Step PACK EXPO International 2022

Weeks after the Russian invasion of Ukraine, Danone announced that, while it would continue to produce essential dairy and infant nutrition products in Russia, it would be cutting all other ties with the country. At the same time, Danone stated that it would not be making any future investments in Russia and would not be taking any cash, dividends, or profits from its business in the country.

Danone is the latest global food giant to cut ties with Russia. In recent months, PepsiCo and Coca-Cola ceased the manufacture of their popular soda brands in the country, Nestlé has suspended the sale of certain brands, and McDonald’s and Starbucks have shut all their locations in Russia.


Special Report: Track & Trace
Discover new tools to approach the supply chain that allow you to leverage your data, see real-time visibility, and forecast future sales. You’ll also learn about KH Hive, an in-house digital demand planning tool that Kraft Heinz created to help the company realize its goals, forecasting sales expectation down to the SKU level, location level, and daily level.
Read More
Special Report: Track & Trace
Rethinking Packaging Robotics to Prioritize Flexibility
In this eBook, you’ll learn how to guard against the traps that CPGs sometimes inadvertently set for themselves when implementing robotics that lead to automation “brittleness.”
Read More
Rethinking Packaging Robotics to Prioritize Flexibility