BBC News, 26
September 2013
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The popularity of foreign brands has grown in China after a series of milk-related scandals |
A report in
Chinese newspaper 21st Century Business Herald has alleged that Nutricia, maker
of Karicare milk formula, bribed doctors to boost sales.
The report,
which cited an unidentified person, claimed that the unit gave gifts and travel
subsidies to more than 100 doctors in 14 hospitals in Beijing.
This is the
second such allegation made against a Danone unit in recent weeks.
"At
the moment we still don't know the details," Zhao Qinghua, a spokeswoman
for Nutricia in China, was quoted as saying by the Reuters news agency.
"We
need to wait to see the outcome of the investigation before we can make our
next plans."
Under
scrutiny
Earlier
this month a report on China Central Television alleged that Dumex, a baby food
brand owned by Danone, bribed doctors to boost sales.
It was
accused of giving "sponsorship fees" or payments of up to 10,000 yuan
($1,632) to hospital staff.
Dumex said
it was "shocked" by the allegations and was investigating the claims.
The French
food giant has also faced other problems in China this year.
Danone cut
prices for its infant milk formula products by as much as 20% after China's top
economic planning body fined it in August for price-fixing.
The firm
also had to issue a precautionary recall of its milk formula products last
month after one of its suppliers, Fonterra, said some items may have been
contaminated.
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 the country.
However,
foreign firms have come under scrutiny recently amid a government-led crackdown
on corruption in the healthcare sector.
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