RE:RE:RE: Signs a Pioneering Powder Manufacturing Agreement T.BABYThe anticipated deal with Danone is initially a licensing agreement for Danone to use Else's recipe to make a Danone manufactured, marketed, and commericialized product under one of Danone's brands.
It does not mean that Danone will manufacture Else products that will be sold under the Else brand.
Else will continue to manufacture, market, and commercialize it's own products. This agreement has no impact on the Danone efforts, nor will the Danone deal, if signed, impact Else's plans for it's own products. This manufacturing agreement will reduce the cost for Else to produce some of the inputs into it's final products. It also constitutes a differentiator vs the Danone produced products due to the unique low-heat production methods.
You see it as another layer of paint, I see it as building a business with a diversified product portfolio, leveraging economies of scale, and pursuing multiple parallel revenue streams.