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Dannon sued over yogurt health claims

January
23

The Dannon Company Inc. of White Plains is facing a potential class action lawsuit accusing the company of falsely claiming health benefits for its Activia and DanActive yogurt. A Los Angeles law firm yesterday filed the suit in federal court on behalf of plaintiff Patricia Wiener and “tens of thousands of consumers� who have purchased the products. Dannon could not be reached to comment.

Activia, introduced in January 2006, was Dannon’s most successful new product to date, with about $130 million in sales that year. In January 2007, Dannon launched DanActive. oth yogurt brands contain specialized bacteria called “probiotic,� which Dannon has claimed come with health benefits. In the case of Activia, the ingredient is “Bifidus Regularis,� a proprietary probiotic bacteria that Dannon said is “proven� to improve one’s “intestinal rhythm� and “regulate your digestive system,� according to the complaint.  DanActive contains the probiotic bacteria “L. casai Immunitas,� which the company has advertised as “clinically proven to help naturally strengthen the body’s defenses,� the complaint states.

Michael Neuwirth, senior director of public relations for Dannon, said in an interview with The Journal News last year: “Probiotics are a key element of our growth strategy. These are what we call high-health products, and they have clinically proven benefits beyond that of traditional yogurt, most often based on proprietary probiotic cultures found only in Dannon products.�

Dannon sells the product at a 30 percent premium to other yogurts, according to the suit, which also said Dannon has spent $100 million on its marketing. Deceptive advertising has enabled Dannon to sell hundreds of millions of dollars worth of ordinary yogurt at inflated prices to responsible, health conscious consumers,� said plaintiff’s lead attorney Timothy G. Blood of Coughlin Stoia Geller Rudman & Robbins LLP.

A key exhibit in the case is a 2006 study funded by Dannon that showed “no conclusive evidence� of probiotics providing health benefits, according to the complaint. The report, entitled “Probiotic Microbes: The Scientific Basis,� was prepared by the American Academy of Microbiology, a leadership group of the American Society of Microbiology, according to the complaint.

The lawsuit seeks redress for consumers and asks Dannon to pull its marketing messages and “correct the record.� Dannon is owned by Groupe Danone in Paris, which also owns Stonyfield Farms Inc., the New Hampshire-based maker of organic yogurt and ice cream.

This entry was posted on Wednesday, January 23rd, 2008 at 6:05 pm by Julie Moran Alterio.
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Business in the Burbs is our online news blog about businesses based or operating in the Lower Hudson Valley. Visitors here will also find items of interest to consumers in the region. Most contributions are from business reporters and editors covering Westchester, Rockland and Putnam counties.

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