The agreement will allow Dutch Mill to combine its world-class manufacturing, marketing and distribution network with Danone Dairy Thailand. It will also enhance the two companies' competitiveness so they can stand at the forefront of innovation.

Dutch Mill said the average per capita consumption of four kilos per year and the high interest shown by urban consumers in the health benefits of dairy products in the domestic market offered promising scope for growth.

Dutch Mill is well-known as one of the fastest growing and largest manufacturers of high-quality dairy products, serving the demands of both local and international consumers.

Danone Dairy Thailand will combine its technical and marketing skills with Dutch Mill's world-class manufacturing and distribution network to enter the Thai market.

"Groupe Danone wants to quickly develop the Danone brand in countries where it is not present yet, and in this context, Thailand is a high-potential market," said Bernard Hours, vice president for fresh dairy products.

"This partnership, which we are very proud of, will allow Groupe Danone to benefit from the market knowledge of Dutch Mill and its distribution channels in the region," he said.