Danone CEO Emmanuel Faber has told reporters the French group will never quit Morocco despite losing 50% of its market share in fresh milk due to a consumer boycott.

Its local dairy firm Centrale Danone has been hit by the boycott since April, said to have been spread on social media by activists amid anger at the cost of living in the north African country.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

They have zeroed in on major suppliers of milk, bottled water and petrol in Morocco. Centrale Danone was targeted along with Afriquia fuel stations and the Sidi Ali water brand.

During a visit to Casablanca yesterday (26 June) Faber told reporters “Centrale Danone will never leave Morocco”.

But he admitted it will take months to address the fallout from the boycott and regain consumers’ trust.

See Also:

Faber said Centrale Danone is planning to sell milk at the cost of production without making a profit if a new deal can be reached with farmers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The boycott has slashed the company’s local sales. Danone has warned it expects a loss of MAD150m (US$15.8m) in the six months ending 30 June, down from a profit of MAD56m in the same period a year ago.

News agency Reuters points out that the Moroccan government has called for the boycott to end, voicing concern that it may discourage foreign investors and undermine the domestic dairy sector.

Speaking to just-food in May, 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.

It said it had had to terminate short-term labour contracts.

Danone has a 99% stake in Centrale Danone.