Leche Pascual's Venezuelan Expansion Seen By BMI As High Risk

French dairy producer Leche Pascual has announced plans to build a yoghurt factory in Venezuela through a joint venture with local food producer Empresas Polar. The two firm's will invest US$104mn in the facility and have set a goal of gaining 50% market share over the next ten years. The factory is to focus on solid and liquid yoghurts and will be distributed by a new joint venture named Pascual Andina. Although BMI is usually in favour of developed market firms expanding their presence in emerging markets, in this instance we would highlight the significant risks that this investment

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