Danone to give up control of dairy business in Russia, write off up to 1 billion euros

MOSCOW. Oct 14 (Interfax) - French food company Danone has decided to begin the process to transfer effective control of its Essential Dairy and Plant-based (EDP) business in Russia to an unnamed party.

The transaction will result in the deconsolidation of Danone's EDP Russia business, the company said in a press release.

In the first nine months of 2022, the EDP Russia business represented about 5% of Danone net sales. The transaction could result in a write-off of up to 1 billion euros, the company said.

Danone is one of the three largest producers of dairy products in Russia. The company's brand portfolio includes Activia, Prostokvashino, and baby foods Tyoma and Rastishka.

In the spring of this year, when it announced that it would stop importing evian and Alpro mineral water and plant-based beverages into Russia, Danone said it did not plan to leave Russia altogether and would refocus its business in the country on essential dairy products, baby food and specialized nutrition, while curtailing new investments and advertising spending.