Dive Brief:
- Danone's Dumex baby formula unit announced that it would launch an internal investigation after a Chinese TV report alleged that its employees had paid hospital personnel in order to increase sales.
- A statement from Dumex indicated that the company was “extremely shocked" by the report, which came from state-owned China Central Television.
- The report found that Dumex had paid hundreds and tens of thousands of yuan as “sponsorship fees” to hospital staff.
Dive Insight:
Dumex wasn't alone in the report. Alcon, Novartis AG's eye-care division, was also implicated in alleged bribery practices. 2013 has not been a great year for international milk products in China, as Dumex was already fined 172 million yuan in August for fixing milk powder prices. New Zealand's Fonterra, meanwhile, faced its own scandals over nitrite levels and botulism worries.