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French food giant Danone suffers huge loss in Morocco due to consumer boycott

Source: Xinhua| 2018-09-20 05:25:57|Editor: Mu Xuequan
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RABAT, Sept. 19 (Xinhua) -- French food group Danone has lost 18 percent of its revenues in Morocco during the first half of this year amid boycott from local customers, the French group said Wednesday.

According to Danone's first half results, the revenues declined to 261 million U.S. dollars from 322 million dollars a year earlier.

The biggest loss included revenues of fresh pasteurized milk, which decreased by 28 percent.

Last April, a consumer boycott was launched in Morocco on social media over unfair prices set by large businesses linked to elite class, and foreign brands in monopoly position.

Earlier this month, Danone announced a series of measures aimed at regaining trust of consumers.

Danone's Chief Executive Emmanuel Faber, who traveled to Morocco, unveiled a price cut on packages of fresh pasteurized milk and the creation of a new cheaper package of half skimmed milk in a pouch.

Faber also said the company has committed to disclosing to consumers information about the quality, the collection and the distribution of milk in the country.

The measures were taken after a widespread consultation of thousands of Moroccan consumers since July.

Danone, which makes 2 percent of its group sales in Morocco, said in July its dairy sales in the country decreased by 40 percent in the second quarter as a result of the boycott.

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