September 5, 2018 / 1:20 PM / a year ago

Danone CEO seeks to reassure Morocco consumers amid boycott

FILE PHOTO: The logo of French food group Danone is pictured during the company's 2017 annual results in Paris, France, February 16, 2018. REUTERS/Pascal Rossignol/File Photo

PARIS (Reuters) - French food group Danone (DANO.PA) announced on Wednesday a series of measures in Morocco aimed at regaining trust of consumers as the company faces a widespread boycott in the country.

Danone’s Chief Executive Emmanuel Faber, who traveled to Morocco on Wednesday, unveiled a price cut on packages of fresh pasteurized milk and the creation of a new cheaper package of half skimmed milk in a pouch, Danone said in a statement.

Faber also said the company has committed to disclose to consumers information about the quality, the collection and the distribution of milk in the country.

The measures were taken after a widespread consultation of thousands of Moroccan consumers since July.

A broad boycott in Morocco was launched earlier this year on social media over what protesters say are unfair prices set by large companies.

Danone, which makes 2 percent of its group sales in Morocco, said in July its dairy sales in the country were down 40 percent in the second quarter as a result of the boycott.

(This copy corrects percentage of group’s sales in Morocco to 2 percent from 6 percent in last paragraph)

Reporting by Inti Landauro and Dominique Vidalon; Editing by Brian Love and Leigh Thomas

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