GRAMEEN DANONE FOODS LTD.
the yogurt that makes you strong
Grameen Danone Foods Limited (GDFL) is a joint venture founded in Bangladesh in March
2006 by the Grameen and Danone groups. Pioneer of social business, GDFL wants to improve
children’s health with a yogurt specially made to satisfy dietary deficiencies essentially found
in children, and affordable to the lowest budgets. To implement this project, GDFL set up in
the socio-economic fabric of the Bogra region, 250 km to the north of Dhaka, to promote
income-generating activities: GDFL buys milk from small farms and develops a rural door-todoor sales network (the Grameen ladies).
www.danonecommunities.com
THE DIETARY AND SOCIAL CHALLENGE
In Bangladesh, the malnutrition rates are among the highest in the
world: 54% of young children show stunting, 56% are underweight and
17% are extremely skinny. These symptoms of malnutrition are linked
to deficiencies in micro nutriments such as vitamin A, iron, iodine, and
zinc. Furthermore, more than 59% of women suffer from chronic energy
deficiency and the studies show that there has been little improvement
in the last 20 years (source: FAO 2010, nutritional profile).
THE GRAMEEN DANONE FOODS LTD
SOCIAL INNOVATION
GDFL was created to meet infant nutritional problems by
developing an innovative industrial solution: the shokti doi
yogurt, “a yogurt that makes you strong”. Made out of local cows’
milk and date molasses, the shokti doi is naturally rich in calcium
and necessary proteins for growth and strength and is also enriched
with micro nutriments that lack in the traditional local food (vitamin
A, zinc, iodine). The prices and products have been adapted to
the different consumers. The Shokti + doï is sold in the towns and
villages of Bangladesh for a price of seven taka that is €0.07 for 60g.
The Shokti+doï extra-protein and the Shokti+mango with mango
flavour are distributed in the larger cities of the country for a higher price.
Moreover, the entire production and distribution chain of GDFL
was built around a clear aim: create as many jobs as possible in the
local community.
GDFL uses a proximity operating model (short channels):
GDFL buys from micro farms that produce raw material (milk,
sugar and date molasses) within a 50 km radius. The local farmers
use microcredits proposed by the Grameen Bank to start their
businesses or increase their livestock, as well as the expertise of
Danone to improve the quality of their production.
In the Bogra plant that has been operational since February
2007, they employ local staff rather than using machines.
GDFL, with the support of CARE and within the framework of the
JITA programme, has developed an original distribution system:
the “Grameen Ladies” who are supplied by small intermediaries,
do the door-to-door selling in order to reach the rural consumers
in the most remote areas and earn a small additional income.
THE IMPACT
Children five to 12 years old are the primary
beneficiaries of the product. Early studies
conducted by Johns Hopkins University, at
the request of the NGO GAIN, demonstrate
that this initiative has a very positive impact
on the physical and cognitive development
of children.
2011
2012
2013
N° of employees
204
264
279
N° Grameen Ladies
878
579
697
N° farms supported
385
442
475
Production (tons)
Turnover (€)
N° yogurts sold/day
INNOVATIVE
Social Investor
1,420
1,644
1,792
1,128,900
1,579,000
1,827,000
83,120
89,492
96,530
10
GRAMEEN DANONE FOODS LTD.
the yogurt that makes you strong
GOALS
In order to strengthen the new distribution system, rickshaw sellers are being trained to
sell together with the Grameen Ladies;
The cold chain is strengthened and the storage capacity of the plant doubled;
Launching of the Shokti + pocket (40g plastic bags for five takas [same price as four years
ago]). A mixture of milk and cereals tasting like traditional local yogurt, it can last for 20
days out of the cold chain and will eventually multiply the sales possibilities by 10;
Construction of a new production line of a capacity of 7,000 tons, on the Bogra site.
THE SUPPORT OF THE
GRAMEEN CRÉDIT AGRICOLE
MICROFINANCE FOUNDATION
Since 2011, the Foundation decided to
support GDFL due to its innovative action
against children’s malnutrition and its
action related to the development of rural
communities. GDFL accompanies and helps
small local farmers improve their production
The Foundation is a shareholder in
GDFL and is represented on its Board
of Directors.
SHAREHOLDERS
Grameen Danone Food
Limited is a «limited
liability company».
Its shareholders are:
and offers them steady marketing
opportunities. GDFL also creates local jobs
and promotes the development of income
generating activities, especially for women.
Above all, GDFL has a fundamental positive
influence on children’s health.
GRAMEEN (www.grameen-info.org): co-founder and shareholder for 50% through several
companies (Grameen Phone, Grameen Knitwear, Grameen Trust, Grameen, Grameen Shakti).
DANONE Asie (www.danone.com): leading world group in the food industry, Danone
considers it is its mission to give access to quality food to the greatest number.
Danone Communities (www.danonecommunities.com): launched in 2007, this fund (French
SICAV), managed and marketed by the Crédit Agricole Group, aims to develop social business
projects proposed by Danone. It holds 29% of the shares in Grameen Danone Foods.
Grameen Crédit Agricole Microfinance Foundation
GAIN (www.gainhealth.org): finances a study to measure the impact on children’s health
PARTNERS
CARE (www.carebd.org): develops a distribution model of multi-brand door-to-door sellers
who more particularly distribute GDFL’s products (www.jitabangladesh.com).
Bangladesh
Surface area: 143,998 km2
Population: 158.5 million inhabitants
GDP per capita: $1,700 (2011)
GNI per capita: $1,529 (2011)
Population below poverty line: 49.6% (2009)
Population in extreme poverty: 26.2%
HDI: 0.496
The economy of Bangladesh is dominated by a few strategic sectors: textiles, shipbuilding,
export of jute, tea and shrimp. The main sectors contributing to GDP are agriculture (19%),
industry (29%) and services (52%).
Nearly 80% of the population depends on agriculture, rice being the main crop. The
majority lives in very precarious conditions and suffers from food insecurity and permanent
illnesses. Most people do not have the means of production (land, tools, etc.).
The problems of water management, soil exhaustion, fragmentation of land
ownership and the high proportion of landless farmers are coupled with a poor road
infrastructure that impedes the marketing of agricultural products.
(146th out of 187 countries classified in 2011)
INNOVATIVE
Social Investor
11