Milk Companies Withdrawal From Chinese Market

Reason before April 1 April Fool’s day, one entitled “Ruikang milk can officially announced its withdrawal from the Chinese market, only one reason,” the article in the micro-channel circle of friends scraper, this paper will exit the Chinese market milk Ruikang attributed to “the agents into one ton of powdered milk, the results sold 10 tons of sales,” a Chinese domestic “foreign milk powder” are fake milk powder atmosphere filled the entire article, the article with plans stressing that it is in New Zealand media “Business (Business Wire) today’s headlines.” But the “Global Times’ special correspondent in New Zealand with maps to find the piece of paper found in the original, not a place throughout the reference to” fake milk powder. ”

Original piece of newspaper with pictures of the “New Zealand Herald” “Financial Edition” March 30 article. • The authors are Christopher Adams, the article analyzes the world-renowned brand can Ruikang milk Why would quit the Chinese market, the reason was a “milk amusing incident” occurred several years ago in New Zealand. 2013, New Zealand’s largest dairy producer Fonterra broke its raw material 38 tons of milk powder whey protein is contaminated, although subsequent investigation proved that Fonterra milk powder has not been contaminated, this thing is just a “clumsy”, but this incident makes cooperation with a plurality of Fonterra milk powder companies suffered heavy losses, can Ruikang parent company Danone Group is one of them. At the time, Danone had to recall eight countries around the world including a large number of infant formula, including dairy products. Which can Ruikang and Dumex two brands of infant formula milk powder market has been hit hard in China. Danone Dumex brand by the end of 2015 will be a loss of sale to Chinese dairy producer Ashley company. March 21 this year, Danone announced the availability Ruikang brands of infant formula milk powder from the Chinese market. Danone spokesman said China will focus on the promotion of two international brands of milk formula: Connaught gifted to love him and the United States.

Danone Fonterra has been considered to be negative reports, let’s be Ruikang Danone Dumex brand in China market and “lay the gun.” To this end, Danone and Fonterra canceled a supply agreement, and Fonterra violation of “fair trade” as an excuse for its lifting more than 10 billion New Zealand dollars (about 4.2 billion yuan) of the huge claims.

In fact, the brand can Ruikang infant formula milk powder market in China defeated the same time, it has made great success in Australia and New Zealand, the two countries accounted for 46% market share. Only in 2015, Ruikang can achieve 46% in Australia and New Zealand growth of 16%.

Throughout the article, Christopher took only 2 small pieces of text description can Ruikang milk channels into China, which at the same time, through official and unofficial channels of sales in China, “In addition to direct export Danone, poured into the Chinese market can Ruikang milk in New Zealand is the local supermarket to buy, after the adoption of the so-called “gray channels” to enter China. “However, the authors followed an anonymous quotes in the dairy industry professionals in November 2013 to” the New Zealand Herald “the information provided: because (Fonterra) botulinum amusing incident, can Ruikang in China’s market is shrinking, many of Auckland’s unofficial channels (milk) exporters have been bankrupt.


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