Danone buys 25% of China infant milk firm

Shanghai

DAIRY giant Danone SA will buy a 25 per cent stake in China's Yashili International for US$550 million, gaining an additional route into the Chinese market for infant milk formula.

Danone's key Dumex brand is battling to win back consumers after it lost ground last year in China amid accusations of high prices, bribery and food safety scares. Yashili specialises in infant milk formula products, making it one of the better known brands in a market that Euromonitor estimates will double in size against last year to hit US$31 billion by 2017.