Abstract

In April 2013 Yakult and Danone announced the end of their strategic alliance, changing it into a “cooperation framework”. This strategic partnership was a key opportunity for the French Group to boost its growth in Asian emerging markets thanks to healthy dairy products expertise of Yakult. However since this failure, Danone has several matters to address in Asia, and especially in Japan. Danone tapped into the Japanese market in the 1980’s during its international expansion strategy, it chose the joint-venture as a development strategy. The French Group successfully launched 5 yogurt brands by adapting a “glocalization” strategy: the yogurt brands were global but at the same time the yogurt tastes were local. Danone decided to import its two bottled water flagship brands, Volvic and Evian, and distribute them intensively thanks to local partners. In 2013 the French Group has more independency than its infancy in Japan: it owns its subsidiary “Danone Japan” and factory in Gunma province. However it still relies on Kirin for the distribution of Volvic, and the local competition is high in both dairy and bottled water markets. Since the failure of Yakult cooperation, Danone should find other growth opportunities in Japan.

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