Sperm bank turns down redheads

In September, Cryos International, the world's largest sperm bank based in Denmark with sites in 65 different countries including the United States, announced that they were beginning to turn away donations from redheads because of a lack of demand for their sperm. Ole Schou, the company's director, stated that, "There are too many redheads in relation to demand. I do not think you chose a redhead, unless the partner - for example, the sterile male - has red hair, or because the lone woman has a preference for redheads. And that's perhaps not so many, especially in the latter case."

I'm not going to lie--I laughed really, really hard when I read this. However, rejecting donations from redheads is still discrimination against a particular group of people; just as much as if the director were to replace "redheads" with "blacks" or "gays" or "asians." From a business perspective, do you think that it is alright to exclude a certain group of people if it means meeting the public's demand?