French dairy group Danone announced that it will merge its Russian fresh dairy business with local firm Unimilk.The deal will generate a business with annual sales of EUR1.5bn and covering Russia, Ukraine, Kazakhstan and Belarus. Danone will hold 57.5% of the new joint venture, and it has an option to buy out Unimilk in 2022.The deal is subject to gaining regulatory approval in the countries concerned and is expected to close towards the end of the year.

According to Euromonitor reports, the Russian dairy industry is quite innovative, with an increasing number of manufacturers looking to supply functional and low-fat products. This trend has helped to grow the functional yoghurt  segment in Russia. Three foreign companies rank in the top five in yoghurt in Russia where Danone leads the market with 16% share, followed by Ehrmann (4%) and Campina (4%).

source: just-food.com