Danone and Yakult consolidate Indian distribution

New Delhi, India: French dairy-product manufacturer, Danone and Japan-based Yakult Honsha are merging their distribution operations in India.

The two companies had separately set up cold-chain distribution systems when Danone and Japanese food and beverage manufacturer, Yakult Honsha entered into an equal joint venture to introduce probiotic drinks in India in 2005.

The companies expect to achieve cost savings through shared cold-chain infrastructure. As part of a three-month shared distribution experiment, the French food company’s products, along with its joint venture probiotic drink, Yakult, have been distributed in retail stores in Pune.

Danone general manager Jochen Ebert said both the companies are building businesses in categories that are not established within the retail market in India.

Yakult Danone India has distribution presence of 3500 outlets across seven locations, including Delhi, the NCR, Mumbai, Bangalore, Pune, Jaipur and Punjab.

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