Dive Brief:
- Danone says it will close its plants in Italy, Germany, and Hungary and eliminate 325 jobs.
- The company blamed a significant drop in European's consumption of fresh dairy products and the continuing downturn in Europe's economy.
- The move comes after Danone announced that fresh dairy volume had fallen in the first quarter to its lowest level in more than a decade as sales revenue dropped 5.2 percent.
Dive Insight:
Between falling sales in Europe and the fallout from crises in Asia, this has been a very tough year for Danone.
About the only bright spot in the Danone universe is its U.S. operation, Dannon, which continues to expand its product line.