Danone has revealed it has shut one of its two manufacturing facilities in Ukraine.
The company, which markets dairy and plant-based products in the country, has two factories in Ukraine, both in central Ukraine – one in Dnipro and another 100 miles further north in Kremenchuk.
Go deeper with GlobalData
A Danone spokesperson could not confirm at the time of writing which of the two plants had been closed.
In a statement, the spokesperson said: “The teams locally are closely monitoring the situation and are putting in place all the relevant actions to ensure the safety of our employees, as well as business continuity.”
Danone principally sells dairy and plant-based dairy alternatives in Russia and Ukraine, which the company houses in its “essential dairy and plant-based products” division, although it also markets infant formula.
He added: “In both countries, we are mostly operating in the EDP category (essential dairy and plant-based products), with a model that is vastly localised, from milk sourcing to manufacturing to distribution. Russia represents approximately 5% of Danone 2021 revenues, and Ukraine less than 1%.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDanone is one of the largest multinational food manufacturers with local production in Russia. The France-based giant has 18 factories in the country, according to the local subsidiary’s LinkedIn page. All are still operating.
The spokesperson refused to be drawn on the possible effects of Western sanctions on the Russian economy. “I’m afraid it’s too early to share anything further,” he said.
Elsewhere in Ukraine, fellow French dairy major Lactalis – the world’s biggest dairy business – confirmed today it has stopped production at one of its three factories in the country.
On Thursday, Nestlé said it halted the manufacturing and distribution of its products in Ukraine, where it has three factories and 5,000 staff.
Meanwhile, reports yesterday said Grupo Bimbo, the world’s largest bakery business, has suspended operations at its plant in the country.
