Danone and Chobani Clash Over Protein Claims in US Yogurt Market

Danone has taken legal action against Chobani, filing a lawsuit in a Manhattan federal court. The French dairy giant accuses Chobani of inflating protein content claims on its yogurt labels, particularly on the Chobani 20G Protein product. This product is considered a direct competitor to Danone's Oikos Pro in the ultra-high-protein yogurt category.

The growing demand for high-protein products is driven by the increasing use of GLP-1 weight-loss drugs, which have led consumers to seek protein-rich foods like yogurt to prevent muscle wastage. A study by Boston Consulting Group indicates that yogurt consumption sees a sustained boost from these drugs, unlike other products such as protein shakes.

Chobani has dismissed the allegations, with CEO Hamdi Ulukaya stating that the company does not add external protein to its products and does not mislead consumers. In response, Danone emphasizes the importance of providing clear and accurate nutrition information for consumers to make informed choices.

While Danone is working to increase its production capacity to meet high demand, analysts from Barclays have raised concerns about the company's slow pace in addressing its US dairy business. Danone's market share has declined from 30.7% to 25.8% over the past three years, whereas Chobani's share has risen from 21% to 26% in the same period.

Danone has previously filed multiple lawsuits against Chobani since 2016, including one related to coffee packaging slogans. However, Chobani maintains that these legal actions are attempts to generate negative publicity. The ongoing legal and market competition underscores the intense rivalry in the US yogurt market, especially in the high-protein segment.