Danone enters the bio dairy category wih a 3 million euros investment | Progresiv
Danone, one of the most important players in the local dairy industry, has invested three million euros in the production area, a decision that marks the company's entry into the bio dairy segment, said Natalia Gelshtein-Kiss, General Director Danone Romania. 
Most of the investment was directed towards the acquisition of new equipment and in the production process. The first bio yogurt under the Danone logo would be launched on the shelf by the end of October.
The decision to enter the bio dairy segment was made based on the growing interest of consumers for this type of products. “After talking with consumers we understood that it is very important for them that the products are made here. If all works according to plans in October we should launch some bio products under the Danone brand and next year we will develop the range and produce in-house Activia bio, a product already listed in modern retail. We want to bring something new to the market, not just a product to write bio on”, said Natalia Gelshtein-Kiss.
For the moment the raw material will be taken from Danone partner farms in the European Union, the producer having concluded a partnership with a local farm that will obtain the bio certification in the next six months. "This means that in March next year we will be able to use this milk", said the executive who runs Danone Romania business for more than two years.
According to data provided by Danone, bio dairy products account for 5-6% of the total market. “A year ago the growth was 30-40% on bio. Even though the pace has slowed, we notice that organic yogurt and fruit yogurt have started to gain ground. If we look outside the yogurt category, bio becomes a new standard of operation, because people associate bio with confidence in that product”, pointed out the General Director of Danone Romania.
Danone Romania has in its portfolio dozens of product assortments, mostly made in the Bucharest factory, with fresh milk collected from Romanian farmers. Danone factory in Bucharest locally produced the first yogurt in 1999. In 2018, the company reported a turnover of 554 million lei, up by 13% compared to 2017, while the profit contracted by 77%, to 28.3 million lei, according to the data provided by the Ministry of Finance.
