The Swedish dairy company, Skånemejerier, and the French food giant Danone, intend to establish a joint venture for production, sales and product development in Sweden late in October.
The venture, in which Skånemejerier and Danone each hold a 50 per cent share, represents a further strengthening of their three year partnership in the Swedish market to include sales of the two companies' products in Finland and Denmark.
Danone recently terminated a production agreement with Finland's largest dairy company, Valio. Earlier in the year a sales and distribution partnership between Danone and Arla Foods in the Danish market came to an end.
With an annual turnover of approximately DKK 97 billion of which yoghurt accounts for half, Danone is the world's largest producer of yoghurt.