The sales and distribution partnership between Danone of France, the world's largest yoghurt producer, and Arla Foods will cease with effect from August 1, 2000.
From 1989 to 1997, the then MD Foods was responsible for sales and distribution of a range of Danone products in the Danish market but in 1997 Danone decided to handle these activities itself until, in 1999, the French dairy giant entered a new partnership with Kløver Mælk. Following the merger between MD Foods and Kløver, however, Danone found itself back with MD Foods again.
According to the trade magazine, Dansk Handelsblad, Danone plans to increase its share of the Danish yoghurt market from approx. 5 per cent to between 10 and 15 per cent during 2001.