Infant formula producers in China to lower the prices
International infant formula producers in China have announced their plans to lower the prices, a mo…International infant formula producers in China have announced their plans to lower the prices, a move which comes after the government initiated an investigation into alleged price fixing by foreign firms.
Danone said that it will lower prices of its Dumex-branded products in China by 5% to 20% beginning 9 July.
In a statement, Danone said that Dumex has already undertaken an internal review with respect to relevant provisions of antitrust law in order to ensure that its operations are in compliance with relevant law and regulations.
The company has co-operated with the NDRC investigation and will maintain today's price reductions for the next year, Danone added.
Earlier this month, Nestlé had announced its plans to reduce the prices of its infant formula products. In addition, Zhejiang Beingmate Technology Industry & Trade also plans to lower prices by 5% to 20%.
The National Development and Reform Commission initiated an investigation into possible price fixing by foreign firms, in response to high prices of infant formula products manufactured by Danone, Mead Johnson Nutrition and Nestlé.
The baby formula scandal in 2008 led to the distrust of local firms in China, which in turn increased the demand for foreign brands.
