Food MNC's CEO wowed by innovation; vows additional investment in nation

French food giant Danone SA said it will continue to invest in China through products focusing on health and sustainability and develop more innovations in the country for its local and international business.

The comments were made by Antoine de Saint-Affrique, CEO of Danone SA, during his third trip to China this year, which highlights the importance of the Chinese market for Danone, their second-largest market worldwide.

"China is a very important market for Danone for several reasons. It's our second-largest market and counts for about 10 percent of Danone's turnover. It is also the source of our innovation and talent," said the CEO.

The impressions made during his multiple visits to local stores and hospitals are "very striking", he said.

"The Chinese market is vibrant, sophisticated and innovative. It's a place where you see science and innovation at work, and where the consumer is at the center," he added.

On China's business environment, the CEO said Danone in China — which has brands including Mizone and Aptamil — has witnessed the business environment progressing each year since the company entered the Chinese market more than three decades ago.

"The authorities are willing to change the regulatory landscape — making it correspond to international economic and trade rules," he added.

The company has been investing and will continue investing in China, said the CEO.

"We are investing not only in production facilities but more importantly, investing in research, innovation and capabilities."

He said over the past several years, the company has witnessed a continuous improvement in China's business environment.

"Continuous improvement will also help us continue to deliver better products in a faster way to Chinese consumers," he said.

In 2020, Danone opened a research and innovation center in Shanghai, with 12 patents that have been filed and are pending, and nine digital health services being invented. The company has been investing in adult medical nutrition with a direct impact on the health of people.

In its interim report, the company saw its global net sales reach 14.2 billion euros ($15.03 billion), up 8.4 percent on a like-for-like basis. Its second-quarter sales growth reached 6.4 percent, compared with the same period a year ago.

In the second quarter in China, its infant formula brand Aptamil continued to deliver solid growth, coupled with further market share gains, while its adult nutrition and pediatric specialty products Nutrison and Neocate posted strong growth. In its bottled water business, Mizone registered mid-teens growth driven by volume, with market share gains.

Looking forward to the upcoming China International Import Expo, de Saint-Affrique hailed the event as "a fantastic exhibition".

"It's a double gate to the world," said the CEO. "It's a gate of the world to China and a gate of China to the world."