Dive Brief:
- Danone, the world's largest manufacturer of yogurt, said recent problems the company has suffered in Asia are huring more than anticipated. The company cut its projections for sales and earnings.
- Danone has stumbled from one crisis to another in China in recent months. The French company had to cut prices after a price-fixing investigation hit the milk-powder business; two of its units are under investigation for bribery; and the company lost millions when it recalled infant formula following an unfounded health scare.
Dive Insight:
It's hard to imagine what else could go wrong for Danone in China. So let's hope the worst is over. But certainly Wall Street remains concerned. Analysts at Citigroup overnight cut the company from "buy" to "neutral." In the meantime, it's worth noting that all is well in the U.S. market, where Danone sells Dannon and Stonyfield brands of yogurt, Evian and Volvic bottled water and a slew of other products.