Danone and Grameen Bank have a joint-venture social business called Grameen Danone, a for-profit enterprise making and marketing yoghurt in Bangladesh. Danone, the French food giant, and Grameen, known for microfinance, saw an opportunity to create jobs and improve nutrition by creating a business that would pay for itself. Danone has the manufacturing and product strength; Grameen has the local market knowledge and connections (see SWOT analysis in Chapter 2 of my book).
The yoghurt was developed to be especially nutritious and affordable; local women who sell the yoghurt make a tiny profit on each cup; and the manufacturing facility creates jobs for people in the area. Grameen Danone has been so successful that it will soon open a second facility in Bangladesh to take advantage of increasing demand.
Grameen and Danone are now working together to bring microfinance to areas of China that were devastated by earthquakes, a great example of leveraging strengths to bring social and financial benefits to local communities.
