Danone’s business in Morocco is being hit by a consumer boycott, said to have been spread on social media amid anger at the cost of living in the north African country.
The boycott, which has been going on for five weeks, has targeted Centrale Danone – the French giant’s local subsidiary – as well as mineral-water company Sidi Ali and Afriquia, the service stations of Moroccan conglomerate Akwa Group.
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Danone’s local milk brand Centrale has been at the centre of the boycott, with criticism over the price of products and allegations about their quality.
Speaking to just-food, Centrale Danone expressed “surprise” at its position as a target, insisting it had not increased prices for five years but also revealing it has had to adapt to the impact the boycott has had on the business.
“The boycott claims to be a campaign to improve Moroccan people’s purchasing power. Centrale Danone was surprised by its involvement in the call considering its milk price has remained unchanged over the past five years,” Centrale Danone said.
“Considering the significant impact of this boycott and in concertation with its dairy supply ecosystem, Centrale Danone has decided to decrease the raw milk collection from its 120,000 farmers. In parallel, Centrale Danone has had to terminate short-term, interim [labour] contracts.”
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By GlobalDataCentrale Danone, in which Danone owns a 99% stake, said it “remains committed to its consumers and its ecosystem” and will “continue to serve Moroccan consumers with quality products and innovations tailored to local needs”.
