French company Danone suffers huge loss in Morocco due to consumer boycott

0 Comment(s)Print E-mail Xinhua, February 20, 2019
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RABAT, Feb. 19 (Xinhua) -- The sales of French food group Danone dropped by 35 percent in Morocco in 2018 amid boycott from local customers, the French group said on Tuesday.

According to Danone's statement, the impact on total net sales was a decrease of 178 million euros versus 2017 net sales, of which around two thirds come from losses in milk sales, and one third from losses in dairy products.

The global yogurt maker revealed that its net profit fell by 4.1 percent to 2.34 billion euros in 2018.

In April 2018, 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.

In September, Danone's Chief Executive Emmanuel Faber travelled to Morocco and announced a series of measures aimed at regaining trust of consumers, including a price cut on packages of fresh pasteurized milk and the creation of a new cheaper package of half skimmed milk in a pouch. Enditem

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