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Just as Danone had established its first yoghurt joint venture in Guangzhou off the back of China’s application 22 Managing a Chinese Partner to join the WTO, it had now found help (or “alliance”28 as articulated by Danone) in the form of Shanghai Bright Dairy, off the back of China’s most crucial step to attaining WTO membership. Towards the end of 2000, Danone announced that it had formed an alliance with, and paid US$3 million29 for a 5% stake in, Shanghai Bright Dairy, which was China’s top dairy company at that time.
Indeed, it was all quiet on the China front at the end of 2007 as Danone was left in control of just three entities from its original Chinese game plan: Aquarius Water (50% stake), Guangdong Robust (92% stake, in effect fully owned) and Shenzhen Health Mineral Water (100% stake). The Wahaha joint venture (51% stake) was placed in the same category as Huiyuan Juice (23% stake), as investments in which Danone had no control but was able to exercise significant influence. Danone Jiangmen Biscuits (100% stake), the first national champion that Danone found in China, was sold along with the rest of its biscuit and cereal division in 2007, as was the Danone’s Bitter Split-Up with Hangzhou Wahaha 29 China beer division, at one time the third biggest in China, which was sold in 2002 – all as part of Danone’s “healthy” refocusing.
When Antoine Riboud courted Gervais Danone back in 1973, Daniel Carasso shared Antoine Riboud’s vision that “his [Daniel Carasso’s] products should be on all markets around the world under their original brand, Danone,”34 which he honoured by placing Danone yoghurts in Guangzhou through Danone’s first joint venture in China. After farming the fresh dairy products market in China for more than 19 years, Danone had finally garnered enough insights and confidence to be in a position to form a joint venture with the newly crowned national champion, Mengniu Dairy at the end of 2006 – in this one sector and brand that meant the most but had remained elusive.