Danone to shed Russian dairy business with 1 bln euro write-off

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PARIS — French food company Danone will shed control of its dairy food business in Russia in a deal that could lead to a write\u002Doff of up to 1 billion euros…

Joining a lengthening list of global companies making costly exits from Russia over the war in Ukraine, Danone will be offloading a business representing about 90% of its operations in Russia, where it will retain its infant nutrition unit.Sign up to receive daily headline news from Ottawa Citizen, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

Many Western consumer goods companies including Nestle and Procter & Gamble have continued to provide essential food and medicine to Russia while also facing pressure from consumers and activists to cut all ties with Moscow. Chief Executive Antoine de Saint-Affrique, who took the helm in September last year, said the company would part with non-performing businesses under a turnaround plan launched this year.Article content

Other areas where the group could review non-core operations include liquid milk and basic dairy products in Brazil, Argentina, Mexico and Morocco, Tegner said, as well as organic milk in the United States, baby meals in France and Italy, plus small water operations in Spain and Poland.The move is the first since the company said in April it was reviewing all options in Russia.

 

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