Danone has suspended deliveries of yoghurts and milk desserts to French retailer Système U because of a long-running dispute over their commercial relationship.
A spokesperson from Système U said the dispute dated back several months but had escalated earlier this week when the French food giant decided to cancel deliveries to the retailer’s distribution centres.
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“The dispute with Danone focuses on our commercial agreement with them,” the spokesperson explained, declining to provide more detail except to underline it had nothing with the upward trend in milk prices. “The matter is in the hands of a commercial tribunal and we expect an outcome by the end of the week probably.”
Some of Système U’s stores are beginning to run short of Danone yoghurts and milk desserts. However, the spokesperson added the retailer was able to offer customers the full range of its own-label products.
Danone had not responded to a request for comment at the time of writing.
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