Viva le Resistance!

After losing the 2012 Olympics and having the EU Constitution shot down, France finally won a big victory. The ugly American invaders have been repulsed. The object of their desire—yogurt.

Let me explain. Yesterday, Pepsi said that it’s not interested in buying Danone. Big whoop, right? Well, to the French, it is.

Danone’s stock started to rally a few weeks ago on rumors that Pepsi was interested in buying them. The company is one of the world’s largest dairy and water companies. Danone is very profitable and owns several well-known brands. In America, they sell Evian water and Dannon yogurt.

While most people would welcome an interest in buying them, the French had their berets in an uproar. The thought of losing Danone to a foreign company, especially an American company, was simply too much to bear. Sacre bleu!

The French political establishment jumped (or hopped) into action and rallied around Danone. Several prominent political figures promised that they would do whatever needed to be done to protect French industry from a hostile takeover. All the while, neither Danone nor Pepsi confirmed the rumors.

The French media had a field day. Le Figaro described Pepsi as “the American Ogre.” (L’ogre Américain!) Thierry Breton, the finance minister, warned Pepsi that “this is not the Wild West.” I’m curious how many cowboys live in Pepsi’s hometown of Purchase, NY. The prime minister, Dominique de Villepin, went on to talk about “defending France’s interests.” He even called Danone, “a flower of our industry.” (Monsieur de Villepin is also the author of four books of poetry.)

How times have changed! Only four years ago, Danone was considering downsizing. In France, the company became public enemy #1. People boycotted their products. Today, the company is a “flower.” Well, it turns out that Danone isn’t exactly French either. It was started in Spain in 1919. Danone gradually became “French” through mergers. Ironic, non?

Some people think that L’affaire D’Pepsi was started by Danone itself to win political favor. If that’s true, maybe they’re more American than they realize.

Posted by on July 26th, 2005 at 9:49 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.