Mϋller: Intensified competition may weaken yoghurt growth

Related tags Danone Competition Marketing

M?ller, the UK's leading short-life dairy producer, claimed that
aggressive competition in the sector may drive down market growth
as a whole.

This was the conclusion drawn in the company's annual report released last week. M?ller believes that value is being driven out of every sector of the market as a result of price competition.

In 2002 Danone bought Shape and Nestlé acquired Ski. The moves led to price-cutting promotions and assertive trading, the company claims.

Danone and M?ller have been involved in large adversing campaigns this year. Danone is the biggest spender in terms of media and advertising and M?ller is a close second.

A continuation in this trend could result in a lack of growth for successful brands, the company claimed.

M?ller has consolidated a 40 per cent hold on the market but it claims that its was Danone and Nestlé's poor performances that has depressed the sector.

Related topics Markets Yogurt and Desserts

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