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Danone strengthens presence in yoghurt market

  Danone launched a new yoghurt brand in the Hungarian market in early November. The move is line with the company's efforts to strengthen presence in the healthy food segment.

The new product called Densia has 50% of the recommended daily amount of the calcium and vitamin D in one serving. The launch was prepared by analyzing current studies about osteoporosis in the Hungarian society and found that 57% of women over 35 are concerned.

In 2010, Danone Hungary was able to generate a slight growth in turnover concerning yoghurt products and at the same time to keep its market share in yoghurt, due to an innovation launched a year ago, called Görög yoghurt, CEO Paolo Maria Tafuri said.

Danone Hungary spends 1.5% of the revenues on R&D and another HUF 100 million a year on consumer studies. Locally, five people are employed in the R&D field.

Danone is one of the major dairy producers in Hungary. It currently has almost 70% of market share in yoghurt and above 50% in other dairy products. In 2009, Danone had turnover of HUF 29 billion and expects about the same for 2010 with maybe a little growth.

The major challenge for 2011 is clearly milk, Tafuri said, adding that it's not only the prices but also the general drop in production in the country. Danone plans to launch a producer support program to counteract this phenomenon, Tafuri said. (BBJ)