Danone, already struggling with falling yoghurt sales as consumers shift to vegan alternatives, is getting hit by a decline in its bottled-water business.

French foods group Danone is to sell a €1.5bn stake in Japanese company Yakult in its latest initiative to boost shareholder returns.

Cost cuts, rising baby food sales in Asia, and an improvement at its dairy business in Europe will all help Danone deliver higher sales and profits this year despite volatile emerging markets, the French food group said yesterday.

Danone, owner of Activia yoghurt and Evian water, will spend about €325m to form a joint venture and invest in China’s biggest dairy producer to expand its brands in the most populous nation.

IT was a recreation of a Botticelli — but nobody got to see Jerry’s botty.