France’s Danone, which sells the Dumex infant formula brand in Vietnam, is reportedly preparing to halt investment in the product in the country as a result of a falling market share.
Danone Vietnam CEO Martin Hoelscher is quoted as telling local media that it has “decided to gradually withdraw” Dumex from Vietnam.
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According to Hoelscher’s interview with the English-language Vietnamnet, the CEO said: “Danone’s activities in Vietnam will continue as normal for the next few months. Dumex will be available until early next year.”
Hoelscher did not comment on the potential impact of the decision on Danone’s wider activities in Vietnam and the ASEAN region. Danone has yet to respond to just-food’s request for details of its plans in Vietnam.
In the first half of 2015, Danone booked impairment charges on the Dumex brand in China. On 31 May this year, Danone finalised the sale of Dumex to Chinese infant formula business Yashili International Holdings, in which the French group holds a 25% stake.Yashili International Holdings, in which the French group holds a 25% stake.
Danone CEO Emmanuel Faber said earlier this year that China is an important market for this part of Danone’s business. Danone has two strands to its formula business in China – the domestic Dumex unit and its international brands.
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