Following a precautionary recall of selected Danone infant formula products from eight markets in the wake of the Fonterra scandal, Danone has welcomed findings from the New Zealand authorities which concluded that all ingredients used by Danone are in 'full compliance with the highest standards of quality'.
The group noted, however, that the product recalls had a 'significant impact' on the group's Baby Nutrition sales in Asia.
Danone CFO Pierre-André Térisse, said, “The division's third-quarter sales will be down, but despite this, our Group is on track to deliver organic growth of around 5% this quarter."
"We are deploying action plans to restore sales in affected markets. Their success will enable Danone to meet its growth and margin targets for 2013," he added.
The food group's announcement follows a precautionary recall of selected infant formula products in eight markets, after the New Zealand government warned on 2 August that batches of ingredients supplied by Fonterra to four Danone plants in Asia-Pacific might be contaminated with Clostridium botulinum bacteria.
The warning was lifted on 28 August when New Zealand's Ministry for Primary Industries (MPI) concluded after several weeks of tests that there was no Clostridium Botulinum in any of the batches concerned.
"None of the many tests conducted by the Group, both before and after this critical period, showed any contamination whatsoever of its products with Clostridium Botulinum," Danone said in a statement on 30 August.
"Danone's food safety management system is among the most demanding and effective in the world and includes rigorous testing of all of its products. But because Danone makes consumer safety an absolute priority, its teams nonetheless quickly and efficiently deployed recall procedures."
The group noted, however, that the product recalls had a 'significant impact' on the group's Baby Nutrition sales in Asia.
Danone CFO Pierre-André Térisse, said, “The division's third-quarter sales will be down, but despite this, our Group is on track to deliver organic growth of around 5% this quarter."
"We are deploying action plans to restore sales in affected markets. Their success will enable Danone to meet its growth and margin targets for 2013," he added.
The food group's announcement follows a precautionary recall of selected infant formula products in eight markets, after the New Zealand government warned on 2 August that batches of ingredients supplied by Fonterra to four Danone plants in Asia-Pacific might be contaminated with Clostridium botulinum bacteria.
The warning was lifted on 28 August when New Zealand's Ministry for Primary Industries (MPI) concluded after several weeks of tests that there was no Clostridium Botulinum in any of the batches concerned.
"None of the many tests conducted by the Group, both before and after this critical period, showed any contamination whatsoever of its products with Clostridium Botulinum," Danone said in a statement on 30 August.
"Danone's food safety management system is among the most demanding and effective in the world and includes rigorous testing of all of its products. But because Danone makes consumer safety an absolute priority, its teams nonetheless quickly and efficiently deployed recall procedures."
