Danone is in talks with Italian chocolate company Ferrero over the sale of its Michel et Augustin brand.
The food manfacturer, which is known for its portfolio of brands including Activia, Actimel, Cow&Gate, Aptamil and Volvic, said the cookie brand fell “outside of its investment priorities”.
Danone group deputy chief executive Juergen Esser told the European Supermarket Magazine: “Michel et Augustin is a much-loved brand, but it falls outside of our investment priorities, in the frame of our Renew Danone strategy.
Michel et Augustin brand
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
“This is the best way to create long-term value while giving Michel et Augustin the opportunity to thrive under the leadership of a Ferrero-related company.”
The acquisition will follow Ferrero buying Fox biscuits from 2 Sister Food Group for £246m in 2020.
“‘The planned acquisition would strengthen the Ferrero ecosystem in France and mark the group’s latest purchase in the premium biscuits market, following the acquisitions of Burton’s Biscuit Company and Fox’s in the UK, Kelsen Group in Denmark and Delacre in Belgium”, read a statement by Ferrero-related holding company, CTH Invest.
Earlier this year, Danone reported a reported 6.2% increase in third-quarter like-for-like sales, reaching £5.9 billion, exceeding analysts’ expectations.
Last week, however, the company came under fire after the CMA accused brands such as Cow&Gate and Aptamil of raising their price greater than their costs.
