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Wednesday, September 18, 2013

Danone hit by China bribery claims

A Chinese mother looking at baby milk formula in a store in ChinaChina has been hit by a series of milk-related scandals over the past years

A baby food brand owned by France's Danone said it is investigating claims the company bribed hospital staff in China to use its products.

According to China Central Television, Dumex allegedly paid doctors and nurses in the northern city of Tianjin to sell its baby formula products.

Dumex said it was "extremely shocked" by the allegations, which aired on Chinese state television on Sunday.

The report cited an unidentified former sales manager.

China has been cracking down on corruption in its $350bn healthcare market. Some inquiries have targeted foreign firms, including British pharmaceutical giant GlaxoSmithKline.

Beijing has also been investigating alleged price-fixing by foreign infant milk makers, which led food giants Nestle and Danone to cut prices of some of their infant milk formula products in China.

Demand for foreign brands has surged in China, after tainted milk scandals in recent years led to a distrust of local producers.

According to some estimates, foreign brands now account for about half of all infant milk sales in China.


View the original article here

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