(Ecofin Agency) - The Moroccan subsidiary of French group Danone, Centrale Danone, lost 50% of its share on fresh milk market due to consumer boycott. The information relayed by Reuters, was announced by Danone’s CEO Emmanuel Faber (photo).

The boycott campaign which kicked off last April 20 on social media also affects the Sidi Ali water brand and the Afriquia fuel stations. Campaigners accused targeted companies of exploiting their market position to impose high costs, well above the country’s standards.

For the record, the movement has already led Centrale Danone to announce last May 29 its intention to reduce the volume of milk sourcing from local suppliers by 30%. Earlier this month, hundreds of the company’s employees, fearing job cuts related to the boycott, have also demonstrated in front of the Parliament building in Rabat.

According to the CEO, the company would need years to improve presence and regain consumers’ trust, but no way the company leaves the country. To this end, the company said it is ready to sell milk at the production price without making a profit if a deal could be reached with farmers. It expects a loss of MAD150 million H1 2018 ending June 30, down from a profit of MAD56 million in the same period last year.

Let’s note that Danone has been in Morocco since 1953. It is present in 40 African countries and also operates in Baby Nutrition and Water.   

Espoir Olodo