FDBusiness.com

Organic Industry Watchdog Moves to Block Merger of Danone and WhiteWave

 Breaking News
  • Orkla Sells K-Salat to Stryhns Orkla Foods Danmark has agreed to sell its K-Salat business to Stryhns, which is part of the Norwegian Agra group. The purpose of the sale is to concentrate Orkla’s activities on fewer categories. K-Salat has a product portfolio of salad spreads, mayonnaise, remoulade, dressings and potato salads in Denmark. Under the agreement, Stryhns will take over [...]...
  • Ardgowan Secures £1 Million to Build Malt Whisky Distillery and Visitor Centre A project to build a new lowland Scotch malt whisky distillery and visitor centre in Inverclyde has taken major step forward with the award of nearly £1 million from the Scottish Government. The Ardgowan Distillery secured £982,000 from the government’s Food Processing, Marketing and Co-operation (FPMC) grant scheme – providing vital capital towards construction costs. Martin [...]...
  • Irish Craft Beer Sustaining Growth A new Bord Bia report has revealed that Irish craft beer is performing well across all fronts, from the number of production facilities to production output, market share and exports. The number of craft breweries in Ireland has grown by more than 500% in the last 5 years, with 72 now in operation, up from [...]...
  • Fi Europe Innovation Awards – The Shortlisted Companies One of the highlights at Fi Europe & Ni is the announcement of the winners of the Innovation Awards. The competition not only rewards the most innovative products and concepts, it also acts as a reliable trend barometer. The ten-member jury, chaired by Peter Wennström of The Healthy Marketing Team, presents a shortlist of the [...]...
  • Advetec Targets Food and Drink Manufacturers With Next Generation Organic Waste Digester To reduce food processors costs, Advetec, a leading specialist in the treatment and reduction of solid and liquid organic waste, has launched the Advetec XO, an evolution of the company’s successful Bio-Thermic Digester (BTD) technology. The system is designed to rapidly reduce organic content within waste at source,cutting off-site transportation and processing costs and helping food manufacturing companies [...]...

Organic Industry Watchdog Moves to Block Merger of Danone and WhiteWave

Organic Industry Watchdog Moves to Block Merger of Danone and WhiteWave
August 12
15:30 2016

The proposed acquisition of WhiteWave Foods by French dairy giant Groupe Danone is anti-competitive and a threat to the U.S. organic dairy market, according to a complaint filed with the Department of Justice and the Federal Trade Commission by The Cornucopia Institute, an organic industry watchdog group. It has also launched a petition calling for federal regulators to investigate the proposed merger.

Danone (Dannon in the U.S.) owns Activa, Oikos, Dannon and the world’s largest organic yogurt brand, Stonyfield. Its proposed $10 billion purchase of WhiteWave would combine Stonyfield with Wallaby, a rapidly growing organic yogurt label, and with Horizon, the nation’s largest organic milk brand, giving Danone a larger share of the U.S. organic dairy market than a single company has ever controlled.

CornocupiaAugust2016In its complaint to DoJ and FTC, The Cornucopia Institute argues this “will have a chilling impact on both competition in the consumer marketplace and the wholesale market for organic milk….We have specific concerns that this acquisition would have a serious anti-competitive effect on the organic yogurt and organic fluid milk markets in the U.S.”

“These are important considerations for determining whether this acquisition violates the Sherman Act and the Clayton Act for anti-competitive and anti-trust reasons,” says Marie Burcham, a livestock policy analyst and attorney with The Cornucopia Institute, who signed the complaint letters. “With this acquisition we are concerned that Danone will easily be able to beat out any competition by lowering prices beyond what farmstead dairies, and more moderate size milk processors and marketers, can withstand.”

The market for organic dairy already has less competition than other agricultural sectors and is more susceptible to monopolization. If, after its acquisition, Danone decides to dump Organic Valley, a Horizon competitor, as a supplier, it could leave only one major purchaser of organic farm milk in some regions of the U.S.

“Mergers like this one could eventually reduce options and raise prices for consumers,” says Mark A. Kastel, Cornucopia’s Codirector. “With less competition, big companies commonly underpay independent farmers for their products, undermining the economic viability of small, family-scale farms.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements