MOSCOW, October 14. /TASS/. Danone has unveiled plans on Friday to transfer the control of its essential dairy and plant-based business in Russia, the French food giant announced this on its website on Friday.
"Danone today announces its decision to initiate the transfer of effective control of its dairy and plant-based business in Russia. Danone considers that this is the best option to ensure long-term local business continuity, for its employees, consumers and partners," the group said in a statement," the food giant said in a statement.
The deal will be subject to regulatory approval, and would result in the deconsolidation of Danone's business in Russia and a possible write-off of up to $1 billion, according to the company.
According to the statement, "a responsible and respectful attitude towards local employees, consumers and partners throughout the entire [transition] process" remains the company's priority.
In April, the food giant said that it had no intention of halting the operation of its 19 factories in Russia or leaving the market, but would focus on the production of basic dairy products. However, imports of sub-brands such as Evian and Alpro would be discontinued.
Danone, which is involved in the manufacture of dairy products and plant-based products, packed water and special nutrition items, including early life nutrition, has a presence on five continents. It owns 13 plants in Russia, with a staff totaling around 7,000 people. The company manufactures products for such brands as Prostokvashino, Activia, Actimel, Rastishka, Tyoma, Danissimo, Danone, Biobalance, Actual, Smeshariki and more.