Danone launches venture

Danone launches venture

PARIS (Reuter): French food group Danone officially launched a joint venture yesterday, PT Danone Biscuits Indonesia, which started producing and marketing crackers, wafers and sweet biscuits under the Danone brand in October.

The company said in a statement its regional holding firm Danone Asia Pte Ltd controls 56 percent of the venture, with the balance held by PT ABC Central Foods, an Indonesian sauce maker.

The production plant, located in Karawang, 75 kilometers from Jakarta, required an initial investment of US$20 million.

The plant represents Danone's first investment in Indonesia, a "priority area" for the group in Asia, Vice-Chairman and President Franck Riboud said in the statement.

A Danone spokesman said it was premature to provide details on output as the plant was just starting up.

But he said the Indonesian biscuit market had grown more than 10 percent annually over the last five years.