Russian grocery retailer Seventh Continent has today (12 August) announced it has stopped buying milk or dairy products from Danone and Unimilk.

“The company believes the conditions being dictated by the two companies [Danone and Unimilk] and is feeling pressure from two companies that are in the process of a merger,” the retailer said in a statement.

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Seventh Continent added that it has a “confident impression that abnormal weather conditions are merely a pretext for pre-scheduled price increases”.

The retailer said it plans to appeal to Russia’s federal anti-monopoly services to explain the circumstances behind the “excessive price increases”.

 

Danone announced plans to merge its Russian fresh dairy business with Unimilk in June.

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The move is set to create a business that generates annual sales of EUR1.5bn (US$1.93bn) and spans Russia, Ukraine, Kazakhstan and Belarus.

 

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