ISLAMABAD: LU Biscuits has been facing a decline in its revenue as the boycott of French products continues in Pakistan and many other Muslim countries over caricatures of Holy Prophet Muhammad (PBUH) in France.
According to media reports, a similar situation is being faced by Total Parco oil marketing company. But LU Biscuits, which sells confectionary items and biscuits such as TUC, Candi, Prince and Tiger, is the worst affected by the boycott.
Many large retailers such as Imtiaz and Chase stores have made its products unavailable for buyers, the SAMAA television reported.
But the interesting thing is that the company says it has nothing to do with France.
LU Biscuits’ 50.5% shares are owned by Pakistani businessman Hassan Ali Khan, according to the company’s website. The remaining 49.5% share is owned by an American company Mondelez International.
“Continental Biscuits Limited is the manufacturer, distributor and seller of LU Biscuits in Pakistan. We would like to unequivocally state that Continental Biscuits Limited and LU Biscuits produced in Pakistan have no connection with, and no ownership by any French company nor France,” reads a banner when you open the Continental Biscuits website.
“Continental Biscuits vehemently condemns the recent blasphemous act in France, against our beloved Prophet Muhammad (PBUH).”
In Pakistan, Continental Biscuits is the manufacturer, distributor and seller of LU Biscuits. The LU brand is completely owned by an American company since 2007.
In 2007, American company Kraft Foods acquired Danone, a French company’s biscuit business, including its 32 manufacturing plants, trademarks and licensing rights for $7.2 billion globally. Subsequently, the French ownership of the LU brand was completely taken over by Kraft Foods.
In 2012, Kraft Foods then split into two entities – Kraft Foods and Mondelez International. The entire snacking business of Kraft Foods was then moved to Mondelez International.
The company says that it has generated employment for 4,500 persons.
Mohammad Mohsin is a shopkeeper with a noticeable assortment of biscuits at a busy market with several tall buildings harboring many offices on the I.I. Chundrigar Road. He is still selling LU Biscuits as he has been convinced by LU Biscuits salespersons that the company has nothing to do with France. But he admitted that people weren’t buying LU biscuits as much as they used to.
“I am selling LU company’s biscuits at least 70% lesser nowadays,” Mohsin said.
Atiq Mir, the chairman of All Karachi Tajir Ittehad, believes the campaign to boycott French products is a very good initiative.
“The economy of every country depends on its exports,” he says. “It will definitely hurt their economy.”
Mir thinks that the emotions of Muslims have been hurt and they have the right and they should respond by boycotting French products.
“But they should first see what they are boycotting is actually ‘Made in France’. They shouldn’t be doing it with products that are made in Pakistan by Pakistani workers,” he says. “In the latter’s case, people would inadvertently be hurting Pakistan’s economy rather than France’s.”
Mir explained that there are many companies which appear to be foreign-owned but actually all of the investment is made by a local partner, all employees are local and and they have a positive effect on the country’s economy. Such companies should not be a target of boycott, he told SAMAA Money.
LU Biscuits unfortunately fell prey to a smear campaign either by competitors or ill-informed persons on social media, Mir added.
