Did anyone else notice Nestle buying Ski yoghurt? Are they goin to 'take-on' Danone?

Question

Or is that 'old news'?

Answer 1

Apre Ski la deluge.

Answer 2

The acquisition of any company by a corporation serves several purposes. First they acquire a product with some public recognition. Second, they acquire a company that expands their own product line. Third, they see a potential growth of their new subsidiary with adequate capital, advertisement and perhaps a better sales force. Fourth, they acquire a functioning production center which is easier and faster than constructing a new facility. Fifth, as the corporation balances its diversity, it adds value to its marketability of its shares (stocks). It is less likely to encounter bad times should the coffee crop or the cacoa crop fail. After an initial shake-down of the new subsidiary, plans are formulated to change the market position of the products. For example, Coca Cola is the number one, and Pepsi is number two but Seven-up undertook a fine ad campaign, billing themselves as the UN-Cola and shifted their position to number three from number seven, which meant millions of dollars of increased revenue. It is not warfare of taking on another company but finding ways to attract consumers to your product. There are countless brands of yoghurt on the market and to get the name recognition will cost a great deal of money. Name recognition is important. The average consumer can remember about ten brands of any product...any kind...if your company can be one of those ten, then you have name recognition. Think about fast food chains, and how many you can name for seafood, or perhaps even pizza, brands of cheese (not type of cheese but brand). Even with computers, ask anyone the brand name and many will automatically answer IBM. That is brand name recognition. So it is not taking on a competitor, it is carving out a space in the market.

Answer 3

Nestle and Danone already compete in the highly competative bottled water space, so I would see this more as "old news."

If they ever merged they would be a formidable consumer product company.

Answer 4

mmmm dan-one

Answer 5

I think they already own it?

Answer 6

so what's wrong with that?