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Grameen Danone: slipping in vitamins with kid's daily yogurt

Slip in vitamins with the kid's daily yogurt!

Photo of Avi Solomon
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http://www.muhammadyunus.org/Social-Business/grameen-danone/

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Photo of Mydhili

Thank you for bringing up Danone, Avi! In my view, Grameen Danone is a brilliant example of a social business that has been backed by a committed for-profit organization.

Some highlights:
It is one of the organizations where Prof Yunus - one of the biggest forces behind the establishment, insisted for "the smallest plant technically possible, located in a rural area, surrounded by the village people it would serve"('Creating a world without Poverty' by Prof. Yunus). Accordingly, Group Danone built a plant that had a footprint of 7500 square feet and was dependent on the neighboring villages for both production and consumption.

There was a cross-subsidy model because of which products were priced higher in Dhaka. "We sell our products in Dhaka with a margin aiming to sell those at lower prices to poor people in remote areas to get them nutrient-rich food."(Article on dailystar: http://www.thedailystar.net/newDesign/news-details.php?nid=71797)

It is also a good example of a patient capital investment. The company has projected that the first plant in Bogra will reach profitability by 2011 or 2012[source: http://www.muhammadyunus.org/images/stories/in_the_media/GDFL_BP_27_10_2010.pdf]