Danone’s third quarter sales affected by the Moroccan boycott

French multinational food-products Danone said its sales growth fell in the third quarter because of the boycott campaign that was initiated by consumers in Morocco, reported Reuters on Wednesday.

The results of the current quarter were affected by dairy sales that fell by 40 percent in the second quarter of the same year.

To limit the loss in the Kingdom, Danone has taken a series of measures to «regain consumers trust», said the British news agency.

Indeed, Emmanuel Faber, CEO of French food group Danone, announced on 5th of September, that Centrale Danone's milk prices will be reduced.

Speaking during a press conference held in Casablanca, Faber indicated that a 470ml milk pack will be sold, starting from Friday, for 3.20 instead of 3.50 dirhams.

The company also created a 470ml milk pouch that can be purchased for 2.50 dirhams only.

On April the 20th, Moroccans launched a boycott campaign to protest against the high cost of living. Boycotters targeted three major companies, including the country’s leading fuel distributor Afriquia SMDC, the French company’s Moroccan subsidiary (Central Danone), and mineral water company Oulmes which both issued profit warnings, impacted by the viral campaign.

In May, Centrale Danone, which is listed in the Casablanca Stock Exchange issued a profit warning, advising the stock market that profits will be lower than expected in 2018. The company has even reduced its raw milk purchases by 30% on May the 29th and terminated several short-term agency contracts.