Riboud defends Danone plans - Franck Riboud, chief executive officer - Brief Article

Eurofood, April 26, 2001

Having announced its restructuring plans and following several weeks of condemnation and facing a boycott of its products, Danone chief executive officer Franck Riboud has defended Danone.

Riboud has been accused by many as only interested in protecting the interests of Danone shareholders. But Riboud remarked that it was normal to look after people who entrust their money to a company.

Riboud also said he felt the case of Danone's restructuring plans, which will see around six factories and up to 2 000 jobs lost around Europe, had become a "political scape-goat". Riboud also explained that if Danone wanted to keep its freedom and independence, then the firm must be able to restructure.

Industry experts in France see Riboud's intervention as a good thing, as Danone tries hard to restore its image.

Separately, it has come to light that the Agnelli family of Italy, noted for its association with Italian car manufacturer Fiat, has withdrawn a 4.3% stake in Danone. IFIL Holding, the firm which held the Agnelli stake in the French concern, said the withdrawal had been planned for some time. IFIL also expressed its on-going confidence in Danone.