Leche Gloria Faces Allegations Over "Greek Yogurt" Marketing in Peru

Description and Justification

Peruvian dairy company Leche Gloria has come under scrutiny for branding its yogurt as "Greek," despite the product not being manufactured in Greece. The company defends its choice by stating that within the industry, the term "Greek" is commonly used to signify yogurt that possesses a high protein content and a creamy texture.

Consumer Group Complaints

The case against Leche Gloria was initiated by the Consumer Protection and Defense Association (Qawaq), which filed a complaint accusing the company of misleading advertising. They argue the use of "Greek yogurt" in the brand's marketing on social media and packaging is misleading to consumers who might believe the product is authentically Greek.

Indecopi's Resolution

The Commission for the Supervision of Unfair Competition of Indecopi ultimately ruled in favor of Leche Gloria. The ruling stated that, due to the lack of a specific regulation in Peru that defines what constitutes genuine Greek yogurt, the use of the term "Greek" could not be deemed deceptive. The decision underscores the ambiguity surrounding this branding in Peru's market regulations.

Leche Gloria's Performance

Despite the controversy, Leche Gloria reported a significant 3.8% increase in net sales during the fiscal year 2024. This upturn was attributed to a boost in sales volume across evaporated milk, dairy products, and drinks in the domestic market.

Continued Growth

The company's net profit reached S/ 246.2 million in 2024, a 44.2% increase from the previous year. This financial performance highlights Leche Gloria's continued influence in the Peruvian dairy market, buoyed by efficient cost management and strong product sales.