Dive Brief:
- The CEO of Danone Nutricia says the infant-formula manufacturer is still feeling the effects of last year's false-alarm recall of its products across Asia.
- Corine Tap, who runs the brand for its parent company, French dairy giant Danone, said it would take roughly 18 months for the effects of recall to fade ... suggesting that another six months of difficulty lie ahead.
- Tap made her comments as Danone Nutricia formerly absorbed the operations of Sutton Group and Gardians, two New Zealand dairy producers it purchased in April.
Dive Insight:
Tap's estimate that it will take Danone a full 18 months to recover from the recall may prove accurate. We'll know soon enough. What's far more difficult to estimate is how long the legal battle related to the recall will drag on. Danone's lawsuit against Fonterra, which issued the initial false alarm that triggered the recall, is on hold pending the results of arbitration in Singapore in a related case.