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French food giant Danone's sales in Morocco decline due to consumer boycott

RABAT
2018-10-18 16:06

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The sales of French food group Danone have declined by 35 percent in Morocco during the third quarter due to a continued boycott from local customers, the French group said on Wednesday.

Moroccan market accounts for two percent of Danone's sales.

According to Danone's quarterly results, sales reached 7.1 billion U.S. dollars, a slow increase of 1.4 percent compared to 3.3 percent growth in the second quarter and 4.9 percent in the first quarter.

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.

In September, 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.
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