Kraft plans R&D centre for ex-Danone biscuit unit
Danone sold its biscuit and cereals division to Kraft for €5.3bn in 2007, handing over in the process some of the biggest biscuit brands in France to the American company, including LU, Tuc and Prince.
Since then researchers working for the biscuit business have been based at the Danone R&D Center in Palaiseau, France, in space leased to Kraft.
Opening date
These workers will only have to move far as far the Paris suburb of Saclay, when the new Kraft innovation centre opens. Building work on the biscuit hub will begin soon and is expected to be completed in time for opening in the first half of 2011.
Once completed, it will join 11 other Kraft Foods R&D centers that support its businesses around the globe.
Kraft spokesperson Laurie Guzzinati said the centre will continue to work on new product development, as well as innovation on everything from formulation to packaging.
Illustrating the importance of R&D in the Kraft biscuit unit, Guzzinati listed some recent innovations including a Petit Dejeuner biscuit with yoghurt cultures and the new wafer range Eo.
French commitment
Kraft is keen to underline the importance of R&D at the company but also in its latest announcement, the company was keen to communicate its commitment to the French market.
“France is an important strategic market for biscuits and for Kraft Foods globally,” said Michael Clarke, Executive VP and president, Kraft Foods Europe.
Building the R&D centre in Paris is an opportunity for Kraft to demonstrate the value of its buyout for France and reassure the country that it would not drain money out of France.
At the time of the acquisition, Kraft was mindful of these fears and promised not to close any of the Danone biscuit manufacturing facilities in France for at least three years.
The Danone biscuit business generated sales of €2.2bn in 2006 when Kraft bought the company and it now fits into Kraft’s broader biscuit portfolio which includes the big global brand Oreo.
