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DANONE demands retraction

DANONE

French dairy giant, DANONE is demanding Russia’s Agriculture Minister retract a statement. Nikolai Fyodorov told regional governors at a conference on Friday that DANONE and PepsiCo were using vegetable oil in place of milk fat in some of their dairy products.  DANONE fired back that they have set the standard for high quality products and food safety in Russia.  DANONE has invested more than $2 billion in Russia’s dairy industry over the past 20 years.  They have 20 plants and employ more than 12,000 people in the country.

The Russian Ag Ministry’s press office issued a statement saying since DANONE and PepsiCo bought Russia’s largest dairy companies four years ago, raw milk purchases have fallen in areas where the plants operate. DANONE and Pepsi are the largest buyers of milk from Russian farmers.  PepsiCo has not commented on the situation.

Analysts see this as just the latest jab at western companies in an on-going dispute over the embargo many Western countries placed on Russia for its actions in Ukraine.

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