Danone announces acquisition of yoghurt-topping maker YoCrunch

French dairy firm Danone has announced the acquisition of YoCrunch, a US-company which produces yoghurt packaged with crunchy mix-in toppings such as M&Ms and Oreo, for an undisclosed amount.

The acquisition is part of Danone’s efforts to increase its presence in the $7bn US yoghurt market.

Danone already has a 30% share in the US market through its Dannon, Activia, Stonyfield Farm and Danimals brands; however, the company is seeking to take advantage of the increasing demand for yoghurt among US consumers.

YoCrunch, founded in 1985, offers yoghurt toppings such as Fruity Pebbles, M&M chocolate candies, Oreo cookie pieces and a lime Greek yoghurt topped with graham-cracker pieces.

The company, which reported net sales of $110m during 2012, has seen a double-digit growth in recent years.

YoCrunch already has licences to include toppings from several snack companies including Nestlé, Mars, Hershey and Kraft Foods’ Nabisco.

Danone stated that the acquisition will strengthen its offerings in the US, and will allow the company to benefit from YoCrunch’s unique expertise in compartmentalised packaging, which is developed in the company’s plant in Naugatuck, Connecticut.

In recent years, Danone has been seeking to expand its presence in the US yoghurt market – in July, the company entered into an agreement with Starbucks to sell co-branded yoghurt through Starbucks cafés and in grocery stores.

Danone is an international company with presence on five continents operating in four businesses: fresh dairy products, baby nutrition, waters, and medical nutrition.

With more than €20bn sales in 2012, the company has over 190 production plants and employs around 102,000 people.

---

Image: With the acquisition of YoCrunch, Danone is seeking to take advantage of the increasing demand for yoghurt among US consumers. Photo courtesy of Groupe Danone.