Danone has taken a minority stake in organic baby food maker Yooji through its investment arm Danone Manifesto Ventures.
Baby food start-up Yooji offers frozen portion-sized organic products, made without salt or additives.
Its products are sold in more than 600 stores throughout France.
Danone’s investment in the French start-up is the latest example of a food giant attempting to expand its portfolio in the organic foods market.
Organic baby food is in demand and shows little signs of slowing anytime soon.
Spending on organic baby food is projected to hit US$783.9mn in 2017, according to a survey from BabyCenter Brand Labs Insight, which is part of Johnson & Johnson - a significant increase from its estimated value of US$613mn in 2013.
Yooji’s Baby Food will operate independently but will utilise Danone’s financial and operational support and access to their worldwide teams, the company said in a statement.
The figures of the investment were not disclosed however, it is is the fourth investment in a year from Danone Manifesto Ventures.
The move highlights Danone’s response to changing consumer trends towards healthier and organic food.
Danone’s venture capital business has already invested in companies including US organic food producer WhiteWave, a US fund that invests in natural organic brands called AccelFoods, and a US company called Farmer’s Fridge which makes vending machines that sell organic salads and snacks.