Dannon to fight suit vigorously: CEO
CHICAGO (Reuters) - The Dannon Co Inc is prepared to "vigorously" defend itself in court against a proposed class action lawsuit that could drag on for years.
The lawsuit, filed in a Los Angeles federal court in January, accused the North American unit of France's Groupe Danone SA (DANO.PA) of mounting a false advertising campaign to convince consumers to pay more for yogurt containing "probiotic" bacteria because of the products' health benefits.
The case said Dannon's studies failed to support its advertised claims that its Activia and DanActive brands were "clinically" and "scientifically" "proven" to have health benefits that other types of yogurt did not.
Dannon's Chief Executive Juan Carlos Dalto said on Monday that the company "very proudly stands by" its claims.
"(They are) truthful and compliant with all laws and regulations," Dalto said at the Reuters Food Summit in Chicago. "We are convinced that what we are saying is true."
"We are fighting (the lawsuit) vigorously and we will follow this in court," Dalto said, noting that he understands such a lawsuit could carry on for years.
Aside from some negative headlines, Dalto said so far the suit has not had any impact on business.
"The truth is that in net sales there has been no impact at all," Dalto said, adding that Dannon's relationship with consumers has not been harmed at all either.
Dalto said the company has run numerous "clinical studies" testing the effects that its Activia and DanActive yogurts have when eaten daily. Dannon claims that a special live bacteria in Activia promotes digestive regularity, while one in DanActive is meant to boost immunity.
"These tests are run in partnership with scientific groups and then reviewed by scientific experts before publication in scientific journals," Dalto said. "We are very strong and convinced about what we're doing. We are optimistic about the outcome."
(For summit blog: summitnotebook.reuters.com/)
(Reporting by Martinne Geller; editing by Carol Bishopric)
