FrieslandCampina Cuts Baby Formula Prices in China as Probe Begins
08 July 2013 --- FrieslandCampina Trading (Shanghai) Co., Ltd. has announced that it is fully cooperating with the Price Supervision and Anti-Monopoly Bureau under China’s National Development and Reform Commission (NDRC) as part of an anti-trust investigation. Beijing has launched an investigation into alleged price-fixing by foreign firms.
The move from FrieslandCampina came as Swiss giant Nestle pledged to "immediately" cut prices on some formula products by up to 20 per cent. The company promised not to raise prices on new formula products for a year. French firm Danone says it will also cut the price of its formula in China, but is yet to release any details.
Sales of foreign brands have soared in China, which is the world's largest market for baby formula, after tainted milk scandals damaged their Chinese competitors.
The most serious scandal killed six children and made hundreds of thousands sick in 2008 when melamine was added to baby formula.
Baby formula quality remains the leading food safety issue in China since the melamine-tainted milk scandal.
FrieslandCampina stated that it supports the NDRC’s objective to ensure fair pricing; the company will reinforce compliance with pricing and anti-trust regulations. FrieslandCampina commits to adjusting contractual terms to explicitly emphasize adherence to China’s Anti-Monopoly Law. FrieslandCampina will also enhance its Code of Conduct and provide comprehensive anti-trust training based on Chinese laws.
To support Chinese consumers and offer more value, FrieslandCampina will per July 8th, 2013 reduce its price of the full range of Friso products in China by 5%.
FrieslandCampina’s value promise includes the unique grass-to-glass system, in which the company invests in managing the entire supply chain from processing, marketing and distribution to provide consumers with safe and premium products. Friso for China is 100% produced and packaged in the Netherlands and distributed exclusively by FrieslandCampina.
FrieslandCampina remains highly committed to the China market. The company continues to fully cooperate with local authorities in every market in which we have a presence, and plays an important role in providing dairy products for hundreds of millions of people all over the world every day.
