The mayor of Gyôr city has accused French food group Danone of willfully misleading consumers by selling imported biscuits under the Hungarian brand name Gyôri.
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When Danone acquired Gyôri Keksz Kft biscuit operations from the UK-based United Biscuits last November, the company pledged to continue developments in the city and secure new export markets. By April this year however, Danone revealed that its Gyôr factory would be closed with the loss of 700 jobs as part of a global cost cutting initiative.
Gyôri biscuit production was due to be transferred to a nearby plant in Székesfehérvár, but workers have complained that the Székesfehérvár plant is only producing 7,000 tons of biscuits a year while it has the capacity for 25,000 tons.
Mayor Balogh objected to the production of Gyôri biscuits moving anywhere other than Gyôr, and revealed that Gyôr City Council wanted to talk with Danone’s leadership about the issue. If talks fail, he told the Budapest Sun Online, “the ultimate step will be legal action”.
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By GlobalData
