Dumex Appoints New Management Following Bribery Claims
News: French food group Danone will appoint new management at its Asian infant nutrition business Dumex. The decision follows allegations that Dumex employees bribed Chinese doctors and nurses to use its infant formula products. Danone has said that it was 'extremely shocked' by the claims, noting that a health-education programme for Chinese mothers was not appropriately managed in some cases.
BMI View: Danone's Dumex brand continues to be a brand leader in China. Despite short-term concerns over domestically produced products, multinationals will continue to play a vital role in satisfying consumer demand, offering attractive opportunities for long-term growth. Ultimately, a key focus area for these companies involves regaining and thereafter maintaining the confidence of the Chinese mainland consumer.