Danone : and Abraaj Group partnership expands Fan Milk’s production capacity in Ghana

Press release - May 23, 2017

Danone, together with The Abraaj Group (Abraaj), a leading investor in growth markets, has added three new production lines to its factory in Accra, Ghana. The total investment of USD 25 million will help Fan Milk (Ghana) Ltd, its local subsidiary, to sustain the growing demand for dairy products in the regional West African market. The investment is proof of Danone and Abraaj's commitment to local manufacturing and to continue growing the Fan Milk brand in the region for the long term. The new production lines will create about 200 qualified jobs at a time when youth unemployment is one of the most pressing challenges facing numerous African states.

This factory extension will also sustain the production of FanMaxx, a new creamy drinkable yogurt that will be available to Ghanaian consumers in June and is the first of its kind in West Africa. FanMaxx is a source of calcium and enriched with vitamins. Its creamy texture makes it filling enough to be a light meal replacer. It can be consumed chilled or ambient, on the go, at home or in the office. FanMaxx' long shelf life (4 months) is particularly suited to the African markets where the cold chain is not always failsafe. FanMaxx is affordable and convenient and will be available in 330ml bottles in more than 5,500 outlets in Accra, Tema and Kasoa by end 2017.

Fan Milk is one of the oldest brands in Ghana. It was founded in 1962 and enjoys outstanding brand recognition in its market. It is a household brand with the highest market share for frozen dairy products in Ghana, its home market. It operates in Côte d'Ivoire, Ghana, Burkina Faso, Togo, Benin and Nigeria, which together gather more than 250 million potential consumers. Danone and Abraaj jointly invested in Fan Milk in 2013. Danone became a majority shareholder in Fan Milk in 2016.

Stéphane Couste, Managing Director of Fan Milk Ghana said, "The new FanMaxx is a product of Fan Milk, which has been a trusted brand in Ghana for 55 years. It is a new, healthy and nourishing yogurt experience that is particularly suited to the local consumers. Fan Milk is famous for its frozen dairy. It will become a household name for its drinkable yogurt as well. Fan Milk Ghana is proud to be the first to produce this innovative experience in West Africa."

Pierre-André Térisse, Executive Vice President Access, Africa at Danone and Non-Executive Chairman of Fan Milk International added, "This is the result of two years' work, combining Abraaj's intimate knowledge of West Africa and Danone's leading expertise of the dairy category in a highly cooperative and fruitful collaboration. Fan Milk's growth has been strong for the past few years and we believe there is potential for dramatically expanding its footprint by exploring yet untapped sources of growth, including the drinkable yogurt category. We are today launching in Ghana, but this is only a first step towards West Africa."

Wahid Hamid, Managing Partner at The Abraaj Group added, "We remain committed to accelerating the growth and penetration of Fan Milk's portfolio of leading consumer food brands across West Africa. This new investment, in partnership with Danone, will further propel Fan Milk's production capacity and ensure it is able to meet ever growing consumer demand for its high quality and nutritious products."

Danone has been active in Africa since 1953, when the company launched its first foreign subsidiary in Morocco. In 2015, Danone created its Africa division as a multi category business to speed up its growth in this strategic region. Africa now accounts for more than 5% of the company's worldwide sales. Danone is present in 40 African countries, mainly through three business lines: Fresh Dairy Products, Early Life Nutrition and Waters. Danone encourages local supply by developing and embedding a durable milk sector. Danone is committed to an innovative model combining economic efficiency and social responsibility that aims at generating a sustainable growth dynamic that creates value and serves the health of each person, the community and the planet. This mission is particularly relevant in Africa.

The Abraaj Group ("Abraaj") is a leading investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey. Employing over 300 people, Abraaj has over 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. The Group currently manages c. US$ 10 billion across targeted investment strategies.

Abraaj has realized US$ 6.3 billion from over 80 full exits, and Funds managed by the Group have made over 170 investments across a range of sectors including consumer, energy, financials, healthcare and utilities. The Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact.

Fan Milk Limited was incorporated in 1960 and was previously known as the Ghanaian Milk Company. It took advantage of Danish investment in the early 1960s and initially specialized in pasteurized milk. However, in 1962, the company changed its name to Fan Milk Limited. Fan Milk Limited was the first foreign invested company in Ghana to become a Public Limited Liability in 1967 and among the first companies to be listed on the Ghana Stock Exchange in 1990. The company produces and distributes milk-based and fruit-based products: frozen dairy products under the brands FANYOGO, FANCHOCO, FANICE and fruit based or fruit flavoured products under the brands FANDANGO or FANPOP.

Dedicated to bringing health through food to as many people as possible, Danone is a leading global food company built on four business lines: Fresh Dairy Products, Early Life Nutrition, Waters and Medical Nutrition. Through its mission and dual commitment to business success and social progress, the company aims to build a healthier future, thanks to better health, better lives and a better world, for all its stakeholders-its more than 100,000 employees, consumers, customers, suppliers, shareholders and all the communities with which it engages.

Present in over 130 markets, Danone generated sales of approximately €22 billion in 2016. Danone's brand portfolio includes both international brands (Activia, Actimel, Alpro, Danette, Danonino, Danio, evian, Volvic, Nutrilon/Aptamil, Nutricia) and local brands (Aqua, Blédina, Cow & Gate, Bonafont, Horizon Organic, Mizone, Oikos, Prostokvashino, Silk, Vega).

Listed on Euronext Paris and on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes, Vigeo, the Ethibel Sustainability Index, MSCI Global Sustainability, MSCI Global SRI Indexes and the FTSE4Good Index.

Marion COCHEREL press.relations@danone.com

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