French multinational Danone is increasing its investment in Nigeria despite ongoing economic challenges. While several global companies are withdrawing, Danone is doubling down on local milk distribution and innovation efforts through its Fan Milk brand to maintain and grow its market share in Africa’s largest economy.
French multinational food company Danone, headquartered in Paris and known globally for its dairy, water, and nutrition products, is intensifying its operations in Nigeria, defying a growing trend of multinational exits due to economic instability. Through its subsidiary Fan Milk Nigeria, Danone is investing in new milk distribution strategies and local market innovations to reduce costs and maintain its presence.
At the Africa CEO Forum held in Abidjan, Christian Stammkoetter, President of Danone for Asia, the Middle East, and Africa, reiterated the company’s belief in Nigeria’s long-term growth potential. The country remains a key consumer market, despite recent macroeconomic challenges such as inflation and currency devaluation under the economic reforms of President Bola Tinubu.
In contrast to recent withdrawals by global players like Procter & Gamble, GSK, and Unilever, Danone has reinforced its operations in northern Nigeria with an upgraded milk distribution system aimed at reducing logistical costs and improving efficiency.
“While the environment is tough, we see opportunities for innovation and stronger market engagement,” Stammkoetter said.
Fan Milk, a well-recognized brand in Nigeria for its dairy-based snacks and beverages, is at the forefront of Danone’s strategy. The company is planning further expansion in product variety and regional market access, which aligns with Danone’s broader goal to deliver affordable nutrition and enhance local partnerships.
Danone’s move signals a vote of confidence in the Nigerian economy’s resilience and long-term consumer demand, particularly in the fast-moving dairy sector. As multinational companies reassess their African footprints, Danone’s continued investment underlines a strategic divergence that may reshape the competitive landscape in Nigeria.
