Danone Romania sales shrank 10% in Q1

The local subsidiary of French food group Danone reported a 10 percent year-on-year decrease in sales during the first quarter of 2009, but estimates that business will recoup during the second half, as prices will drop for all products, declared today the company's managing director, Stephane Batoux, cited by NewsIn.

All Danone prices will be cut by 8 percent in July, in an effort to spur a 5-10 percent rise in turnover. One type of the producer's yoghurt lineup was 20 percent cheaper in April. The strategy will also help Romanian farmers, according to the Danone representatives.

Batoux added that the company will not lay off people this year. Danone Romania now employs about 720 people.

Sales of Danone tumbled in the summer of 2007 following suspicions regarding dioxin contamination. Romania's food safety authority then withdrew several batches of fruit yogurt on the suspicion of being contaminated with dioxin, but later returned them as tests revealed that they posed no risks to consumer health.

Danone Romania is part of the Danone Group, one of the global leaders in the food industry. The group operates 150 factories and counts around 76,000 employees worldwide. Danone is present on all five continents, in more than 120 countries, and reported sales of more than 15 billion euros in 2007.

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