Groupe DANONE Becomes the Leader of the Packaged Water Market in Mexico

PARIS, May 3, 2001 (PRIMEZONE) -- Groupe DANONE (NYSE:DA) announced today the acquisition of 50% of PUREZA AGA, which holds the number 2 position on the Mexican Home and Office Delivery market (HOD) with 1.2 bn liters sold in 2000 for Euros 100 mn sales.

Mexico is the largest HOD market and the second packaged water market in the world with more than 13 billion liters sold in 2000.

PUREZA AGA bottles and distributes purified water to residential and commercial outlets in Mexico City and in the largest cities of Mexico such as Guadalajara, Monterrey, Toluca, Puebla, Irapuato, and Leon. PUREZA AGA has a network of 10 plants and 16 distribution centers and employs more than 3800 persons. The brand PUREZA AGA was launched in 1950 in Guadalajara and holds the number 2 position in the country. It is also the 5th largest brand of packaged water in the world.

Groupe DANONE has been in Mexico for over 30 years and holds the number 1 position in the Fresh Dairy market with the DANONE brand and the number 1 position in the retail bottled water with the BONAFONT brand.

The combination of PUREZA AGA' s strong position in the HOD market and BONAFONT's leadership in the retail market gives Groupe DANONE overall leadership, in value term, of the packaged water market in Mexico.

Groupe DANONE is pursuing, in the water business, its acquisition strategy of strong local positions in emerging markets. Over the last month, Groupe DANONE has taken control of Aqua in Indonesia, and 50% of Zywiec in Poland, two leaders in these countries.


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