Yoghurt maker Danone has reduced its forecast for like-for-like sales growth due to the poor performance of its probiotic yoghurt Activia.
Danone said in a statement the company has been facing an "increasingly volatile and complex environment" and that "Activia's performance as well as aggravated market conditions in Spain have impacted Europe Dairy results".
The French business had originally forecast sales growth to be between three per cent and five per cent this year, but said today that growth would come in "slightly below target". The company is aiming to achieve organic sales growth of five per cent by 2020.
Danone's share price was down 2.97 per cent at time of writing, making it one of the top losers in European trading. Its shares are listed on the Cac index in France.
The group has been aiming to change Activia's brand identity in Europe, and said that while the yoghurt was "well received" by customers, the company was making changes to its plans on a local level.
Danone recently struck a $12.5bn (£10bn) deal to acquire US premium food retailer The WhiteWaves Foods Company, seeking to stay relevant in the changing food market.