Spain sours Danone profits
The French dairy giant pointed to the challenges of operating in the Spanish economy as it announced a profit warning.
Danone has indicated its decision to "fight" for market share in southern Europe - and in Spain in particular - is one of the primary reasons that it has lowered its margins outlook for 2012.
French dairy group Danone has warned that its profits will be hit by weaker margins during fiscal 2012.
Spanish retailer El Corte Ingles has announced price cuts on thousands of food products in a bid to stay competitive in the country's ailing economy.
Commodity inflation has led manufacturers to look to increase prices and, according to the latest data from the just-food international basket, the price on shelf has risen. As SymphonyIRI's Rod Street writes, retailers have reacted by using promotions less often and there are signs Every Day Low Price strategies are gaining traction.
The latest data from the just-food international basket, published today, covers the first quarter of 2012. The basket is a group of 17 items from tuna to milk that will highlight the difference in price between national brands and own label in seven international markets. Amid the worst economic conditions for a generation, shoppers are becoming more promiscuous in their behaviour and the data will prove valuable to brand manufacturers, own-label suppliers and retailers alike.
Spanish cooperative retailer Eroski reported narrowing full-year losses as lower financing expenses and measures to strip costs out of the business helped offset declining sales.
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