Danone has announced a $25 million investment in its subsidiary in Ghana, Fan Milk. The money will enable the addition of three new production lines to its factory in Accra.
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Danone has announced a $25 million investment in its subsidiary in Ghana, Fan Milk. The investment is being executed to allow for the maintenance of the sustainable growing demand for dairy products in the country. The investment is being made in partnership with The Abraaj Group, the Dubai-based private equity investor owns a 51% stake in Fan Milk.
The money will enable the addition of three new production lines to its factory in Accra which will be used to support the rollout of their new product to hit the Ghanaian market in June, called FanMaxx, a new ‘creamy drinkable yogurt’.
The investment, Danone added, is proof of its ‘commitment to local manufacturing and to continue growing the Fan Milk brand in the region for the long-term’. It will also contribute to the local economy by providing for 200 qualified jobs.
The Managing Director of Fan Milk Ghana Stéphane Couste said: “The new FanMaxx is a product of Fan Milk, which has been a trusted brand in Ghana for 55 years. It is a new, healthy and nourishing yogurt experience that is particularly suited to local consumers. Fan Milk is famous for its frozen dairy but it will become a household name for its drinkable yogurt as well.”
Pierre-André Térisse, executive vice-president access, Africa for Danone and non-executive chairman of Fan Milk also added: “This is the result of two years’ work, combining Abraaj’s intimate knowledge of West Africa and Danone’s leading expertise of the dairy category in a highly cooperative and fruitful collaboration. Fan Milk’s growth has been strong for the past few years and we believe there is potential for dramatically expanding its footprint by exploring yet untapped sources of growth, including the drinkable yogurt category. We are today launching [this product] in Ghana, but this is only a first step towards West Africa.”
Abraaj managing partner Wahid Hamid concluded: “We remain committed to accelerating the growth and penetration of Fan Milk’s portfolio of leading consumer food brands across West Africa. This new investment, in partnership with Danone, will further propel Fan Milk’s production capacity and ensure it is able to meet ever growing consumer demand for its high quality and nutritious products.”
Fan Milk’s other dairy products include FanYogo frozen yogurt pouches and FanIce ice creams. It also produces the Fandango brand of fruit drinks.