DANONE TURKEY INVESTS ~@20 MILLION ANNUALLY
By Abdulhamit Yildiz

Zaman, Turkey
Nov 22 2006

As reactions against France’s alleged Armenian genocide draft
law continue, French companies in Turkey are concerned economic
relationships may be damaged.

Danone Turkey General Director Serpil Timuray said they staunchly
opposed the genocide law: "While boycotting, please do not forget the
nearly 15,000 farmers we buy milk from and our 1,700 workers," he said.

Investors, including Carrefour and Danone, called on Paris to withdraw
the draft law as they have begun to use the "Made in Turkey" label
more distinctly on their products.

Timuray, whose Danone products were removed from shelves in some
market chains in the first days of the boycott, thinks they are being
unjustly treated.

"We, too, feel that reaction in our heart. We decided to respond
with democratic action and held a signature campaign," Timuray said,
adding France-based Danone’s plants in Turkey contributed a great
deal to the overall employment in the country.

Danone Turkey employs 1,700 people and collects milk from 15,000
Turkish farmers daily.

Six hundred dealers sell their products under the Danone umbrella.

The group attaches major importance to Turkey, one of the countries
where it is experiencing the most rapid growth.

The French company, which earns ~@14 billion annually, allocates four
percent for investment every year.

The company allocated ~@20 million in 2006 for new investments in
Turkey, and the total amount the company has allocated Turkey so far
exceeds ~@250 million.

Danone employs 15 Turkish administrators in production and sale works
in the countries where it operates.

Danone Turkey’s CEO said it was too early to fully assess the effects
of the boycott.

Stating she did not approve such actions from a country trying
to attract foreign capital, Timuray noted the draft law disturbed
everyone.

Stressing they held a signature campaign, the French company’s CEO
said, "We did not consider this a company initiative, we took action
as citizens. Our general headquarters in France supported this;
we lobbied in a sense."

Timuray believes Turkey has an image problem coupled with poor
advertising.

Companies investing in Turkey, like Danone, could be used as an example
and their recent progress could be turned into a good image campaign.

The picture of Turkey dating back 20 years in the minds of many in
Europe may be replaced with the new one.

Advertising Fines Misfortune for Companies

Turkey’s TV advertising and regulation council objected to the
advertisements for Danacol and Benecol, produced by Danone and Ulker,
on the grounds that they claim to reduce cholesterol.

Timuray said they received the necessary authorization for these
products: "We are in chaos at the moment; this is a newly forming
category. Such discussions keep consumers away from useful products.

This is an unlucky situation for the companies that commercially
invested in this business."