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Middle East: Boycott of Danish Goods "out of control"
 The boycott of Danish products in Saudi Arabia, following the publication of a series of drawings featuring Prophet Mohammed was out of control, according to major food distributors and shopping mall owners. In the three weeks since the boycott started, the network of relations between importers, manufacturers and supermarkets has reached a complete standstill. Abdullah Saleh al Athim, the general director of al al Athim Trading Company, revealed that the boycott is no longer bound by personal decisions taken by certain companies. Officials at Danish food manufacturers have indicated their products have lost all their share of the market, which would have long-term damage to their companies. A spokeswoman for Arla Foods indicated the Danish company had lost $20million US since consumers across the Middle East and North Africa have decided to shun its products, which represents between 8 and 10% of its annual revenue. She said the company had retained its 800 employees in Saudi Arabia despite the suspension of work. Talks were currently underway with headquarters to inform them of the losses incurred, totaling $1.8 million US a day. Al Athim indicated that his company had acted, on its own initiative, after the row over the Danish cartoons erupted, and stopped selling Danish products in 70 outlets and terminated new contracts made in conjunction with Saudi importers by recovering all the products stored in warehouses, worth in excess of 260 thousand USD. The total value of products that stopped or cancelled reached $21 million US OR 10% of gross sales.
Posted by: Fred 2006-02-15 |
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| http://www.rantburg.com/poparticle.php?ID=142655 |