DBR Staff Writer Published 16 March 2012

Mead Johnson Nutrition and Argentina-based diary producer SanCor Cooperativas Unidas have officially established a joint venture (JV) to expand the availability of pediatric nutrition products across the Southern Cone of South America.

Mead Johnson Nutrition chief operating officer Kasper Jakobsen and SanCor Cooperativas Unidas of Argentina chairman of board of administration Oscar Carreras met in Buenos Aires to establish the JV.

Mead Johnson will invest ARS850m ($196m) for an 80% ownership interest in the JV, which will develop, produce and market pediatric nutritional products under the SanCor Beb brand at existing facilities in Argentina.

The company will provide clinical research, proprietary formulas and product innovation, while SanCor will contribute its local market knowledge of Argentina and manufacturing capabilities.

Carreras said Mead Johnson strengthens its presence and growth potential in South America, while SanCor is able to better leverage its manufacturing base and continue exploration of business opportunities in other promising categories.

In 2011, SanCor's turnover in the infant formula and children's growing-up milk categories totaled nearly ARS300m ($69m).

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Mead Johnson, SanCor establish pediatric nutrition JV