Grameen Danone
Encyclopedia
Grameen Danone Foods, popularly known as "Grameen Danone" is a social business enterprise
which, launched in 2006, has been designed to provide children with many of the key nutrients that are typically missing from their diet in rural Bangladesh
. It is run on 'No loss, No dividend' basis. Initially, Grameen Danone agreed to create a small dividend of 1%/year to shareholders, however, in December 2009, the board of Grameen Danone agreed to waive any monetary return.
, France
, in 2005, Professor Muhammad Yunus
, the founder of Grameen Bank
was invited by Franck Riboud, the chief executive officer of Groupe Danone (known as Dannon in the USA). On 12 October 2005, they met in La Fontaine Gaillon, a Parisian restaurant. There Yunus proposed to form a joint venture between Grameen and Danone with the objective of supplying nutritious food to poor children of Bangladesh
. As proposed by Muhammad Yunus, Franck Riboud agreed to participate in the project to be styled a social business. Accordingly, the Grameen Group and Groupe Danone entered into an agreement to form a company called Grameen Danone Foods - a social business
in Bangladesh. The objective was to bring daily healthy nutrition to low income nutritionally deprived populations in Bangladesh and alleviate poverty through the implementation of a community based business model, where no profit will be appropriated by the investing partners.
of France
.
The plan in 2006 was to build 50 additional dairy plants over the 10 years to 2016 in rural areas of Bangladesh. There is no mention on the organisation's website about how far towards this goal the company has progressed.
, vitamins, iron
, calcium
, zinc
and other micronutrients aimed to fill nutritional deficits of children in Bangladesh
. 'Shakti Doi' (which means 'power yoghurt') is primarily intended for children. Originally, the price of each 80g cup was set at 5 Taka, (c. Euro 0.05 or USD$0.07). Yunus claims that the global food crisis beginning in 2006, made price adjustments necessary. In 2010, a 60g cup sold for 6 Taka in rural markets. An 80g cup sold for 8 Taka in "local city" stores and 12 Taka in Dahka, Bangladesh's largest city.
district which is about 230 km north of Dhaka
, the capital city of Bangladesh
. The first factory is a small one built upon an area of 7000 sq ft (650.3 m²). Its daily production capacity was 3,000 kg of yogurt when launched in 2006. In 2008, the production capacity has been planned to be enhanced to 10,000 kg and beyond. Several hundred livestock-farming and distribution jobs would be created in the local community as a result of establishment of the first factory.
Social business
Social business, as the term is commonly used, was first defined by Nobel Peace Prize laureate Prof. Muhammad Yunus and is described in his books Creating a world without poverty—Social Business and the future of capitalism and Building Social Business—The new kind of capitalism that serves...
which, launched in 2006, has been designed to provide children with many of the key nutrients that are typically missing from their diet in rural Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
. It is run on 'No loss, No dividend' basis. Initially, Grameen Danone agreed to create a small dividend of 1%/year to shareholders, however, in December 2009, the board of Grameen Danone agreed to waive any monetary return.
Historical notes
During his visit to ParisParis
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, in 2005, Professor Muhammad Yunus
Muhammad Yunus
Muhammad Yunus is a Bangladeshi economist and founder of the Grameen Bank, an institution that provides microcredit to help its clients establish creditworthiness and financial self-sufficiency. In 2006 Yunus and Grameen received the Nobel Peace Prize...
, the founder of Grameen Bank
Grameen Bank
The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans to the impoverished without requiring collateral...
was invited by Franck Riboud, the chief executive officer of Groupe Danone (known as Dannon in the USA). On 12 October 2005, they met in La Fontaine Gaillon, a Parisian restaurant. There Yunus proposed to form a joint venture between Grameen and Danone with the objective of supplying nutritious food to poor children of Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
. As proposed by Muhammad Yunus, Franck Riboud agreed to participate in the project to be styled a social business. Accordingly, the Grameen Group and Groupe Danone entered into an agreement to form a company called Grameen Danone Foods - a social business
Social business
Social business, as the term is commonly used, was first defined by Nobel Peace Prize laureate Prof. Muhammad Yunus and is described in his books Creating a world without poverty—Social Business and the future of capitalism and Building Social Business—The new kind of capitalism that serves...
in Bangladesh. The objective was to bring daily healthy nutrition to low income nutritionally deprived populations in Bangladesh and alleviate poverty through the implementation of a community based business model, where no profit will be appropriated by the investing partners.
Launch
The launch of Grameen Danone received considerable attention and was attended by celebrities including French soccer player Zinedine ZidaneZinedine Zidane
Zinedine Yazid Zidane is a retired French footballer. He is widely regarded as one of the greatest players of all time. Zidane was a leading figure of a generation of French players that won the 1998 World Cup and 2000 European Championship...
of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
.
The plan in 2006 was to build 50 additional dairy plants over the 10 years to 2016 in rural areas of Bangladesh. There is no mention on the organisation's website about how far towards this goal the company has progressed.
Products and price
Grameen Danone Foods Ltd. produces a yoghurt called Shakti Doi containing proteinProtein
Proteins are biochemical compounds consisting of one or more polypeptides typically folded into a globular or fibrous form, facilitating a biological function. A polypeptide is a single linear polymer chain of amino acids bonded together by peptide bonds between the carboxyl and amino groups of...
, vitamins, iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
, calcium
Calcium
Calcium is the chemical element with the symbol Ca and atomic number 20. It has an atomic mass of 40.078 amu. Calcium is a soft gray alkaline earth metal, and is the fifth-most-abundant element by mass in the Earth's crust...
, zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
and other micronutrients aimed to fill nutritional deficits of children in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
. 'Shakti Doi' (which means 'power yoghurt') is primarily intended for children. Originally, the price of each 80g cup was set at 5 Taka, (c. Euro 0.05 or USD$0.07). Yunus claims that the global food crisis beginning in 2006, made price adjustments necessary. In 2010, a 60g cup sold for 6 Taka in rural markets. An 80g cup sold for 8 Taka in "local city" stores and 12 Taka in Dahka, Bangladesh's largest city.
Objective
Grameen Danone Foods aims to reduce poverty by creating business and employment opportunities for local people since raw materials including milk needed for production, will be sourced locally. The companies that make up Grameen Danone Foods Ltd. have agreed not to take out any of the profits out of the company. Instead they will invest these for creation of new opportunities for the welfare and development of people. Hence it is called 'social business enterprise'.Production capacity
Grameen Danone has planned to set up and launch as many as 50 production plants during the ten years between 2006 and 2016. The first factory has been built in BograBogra
Bogra is a town, and one of the oldest towns in northern Bangladesh. It is a centre of commerce and trade within the Bogra District and located under the Rajshahi Division. Bogra is sometimes described as the nerve centre of Northern Bangladesh. Amongst many notable activities, it has been hosting...
district which is about 230 km north of Dhaka
Dhaka
Dhaka is the capital of Bangladesh and the principal city of Dhaka Division. Dhaka is a megacity and one of the major cities of South Asia. Located on the banks of the Buriganga River, Dhaka, along with its metropolitan area, had a population of over 15 million in 2010, making it the largest city...
, the capital city of Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
. The first factory is a small one built upon an area of 7000 sq ft (650.3 m²). Its daily production capacity was 3,000 kg of yogurt when launched in 2006. In 2008, the production capacity has been planned to be enhanced to 10,000 kg and beyond. Several hundred livestock-farming and distribution jobs would be created in the local community as a result of establishment of the first factory.
Further reading
- Muhammad Yunus : Creating a World Without Poverty, 2007, Public Affairs, New York.
- Faizul Latif Chowdhury : "The Business of 'Social Business'", The New Age, Dhaka.