The French food group Danone wants to withdraw from the business with dairy products and plant-based alternatives in Russia. The group decided to look for a buyer. Only one line of production is exempt from the step.
The French food group Danone is ending most of its activities in Russia. The company said it would withdraw from its dairy and plant-based products business. This includes the majority of Danone’s business in Russia and has so far accounted for five percent of the group’s total sales in 2022.
The step could lead to write-downs of one billion euros, it said. At first it was unclear who would take over the business in Russia and when. The decision must also be approved by the competent authorities.
After the Russian attack on Ukraine, Danone was one of the few international companies to remain present in Russia. A whole series of companies withdrew from the country or temporarily closed production facilities.
Danone initially stated that he wanted to stay in Russia in order to be able to help secure the food supply for the civilian population. But now it has been said that withdrawing from most of the business is the best option to ensure the long-term continuity of the local business for its employees, consumers and partners. However, the group wants to maintain the baby food business.