Retail in Asia

In Sectors

Safety scandals give foreign dairies a boost in China

Global food and dairy companies are making another round of big bets on China’s fast growing dairy sector, hoping to position themselves as safe alternatives even after a lethal baby formula scandal burned many of them the first time around.

They are lured by a projected 10 percent annual growth and by Chinese consumers’ willingness to pay a nice premium for foreign brands as they remain wary of local brands’ safety records.

Just last week, China’s top-selling dairy firm Inner Mongolia Yili Industrial Group recalled six months’ worth of one brand of infant formula after government tests found it was tainted with mercury, a heavy metal that can cause neural damage if ingested.
 

(Source: CNBC)