Daily Newsletter

08 November 2023

Daily Newsletter

08 November 2023

Danone adds to adult medical-nutrition range in China

Alongside yogurt and bottled water, the French group develops products for people with special medical needs.

Dean Best November 07 2023

Danone has expanded the line of products it sells in China for adults with special medical needs.

The French group already supplies its Nutrison and Peptisorb tube-feeding products in China for patients who cannot eat or swallow normally.

Danone has decided to add its Fortimel brand to its local portfolio. The company is selling Fortimel Balanced beverages made at its facility in Wuxi in eastern China.

The group pointed to the country’s ageing population and the rising “incidence of chronic disease”, as well as demand for “adequate nutritional care upon discharge” from hospital.

The drinks are “designed to meet the nutritional needs of patients recovering after surgery or non-communicable diseases like cancer and stroke”, Danone explained.

Bruno Chevot, the president of Danone’s business in China, north Asia and Oceania added: “It marks a solid step into the AFSMP [Adult Foods for Special Medical Purposes] market in China and helps Danone to further grow its portfolio covering the full life spectrum.”

Danone’s medical nutrition business is part of its wider “specialised nutrition” division, which also includes products for infants like baby food and formula. The company says medical nutrition products account for approximately 40% of the division’s sales.

Overall, the business unit accounts for 30% of Danone’s total revenues. It grew its revenues by 10% on a like-for-like basis in 2022.

Last month, Danone said it had invested €15m ($16m) to expand a factory in Turkey for medical nutrition products.

Food industry in Eastern Europe is highly fragmented

Rising urbanization coupled with the increasingly busy lifestyles of consumers have resulted in the increasing demand for RTD beverages that are easy to carry and quick to consume. Further, the pandemic has created a huge surge in demand for non-alcoholic beverages with functional benefits and value addition, including low sugar, added proteins, probiotics, and plant-based ingredients. The beverage manufacturers have been capitalizing on the trends by focusing on both value addition and convenience associated with the packaging of RTD beverages.

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