Danone and Abraaj Group expand Fan Milk capacity in Ghana to launch new product
The new production lines will create about 200 jobs.
The $25m investment will help Fan Milk (Ghana) Ltd, Danone’s local subsidiary, to sustain the demand for dairy products in the West African market.
New drinkable yogurt
The factory extension will also be used for the production of FanMaxx, a new drinkable yogurt that will be available to Ghanaian consumers in June and is the first of its kind in West Africa.
FanMaxx is a source of calcium and enriched with vitamins, and can be consumed chilled or ambient.
Danone said FanMaxx’s four-month shelf-life is particularly suited to the African markets where the cold chain is not always failsafe.
FanMaxx will be available in 330ml bottles in more than 5,500 outlets in Accra, Tema and Kasoa by the end of 2017.
Fan Milk is one of the oldest brands in Ghana, and also operates in Côte d’Ivoire, Burkina Faso, Togo, Benin and Nigeria.
Strong growth
Danone and Abraaj jointly invested in Fan Milk in 2013, with Danone becoming a majority shareholder in Fan Milk in 2016.
Pierre-André Térisse, executive vice president access, Africa at Danone and non-executive chairman of Fan Milk International, said Fan Milk’s growth has been strong for the past few years, and Danone believes there is potential for dramatically expanding its footprint by exploring untapped sources of growth, including the drinkable yogurt category.
“We are today launching in Ghana, but this is only a first step towards West Africa,” Térisse said.
Danone in Africa
Danone has been active in Africa since 1953, when the company launched its first foreign subsidiary in Morocco. In 2015, Danone created its Africa division to speed up growth in the region.
Africa currently accounts for more than 5% of the company’s worldwide sales. Danone is present in 40 African countries, mainly through three business lines: fresh dairy products, early life nutrition and waters.
About The Abraaj Group
Abraaj is an investment group specializing in the growth markets of Africa, Asia, Latin America, the Middle East and Turkey. Employing over 300 people, Abraaj has more 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore.
About Fan Milk
Fan Milk Limited was incorporated in 1960 and was previously known as the Ghanaian Milk Company.
The company produces and distributes milk-based and fruit-based products: frozen dairy products under the brands FANYOGO, FANCHOCO, FANICE, and fruit based or fruit-flavored products under the brands FANDANGO or FANPOP.
