Danone powdered milk business probes China bribery allegations

 
City A.M. Reporter
A UNIT of French food group Danone said yesterday it has opened an investigation after Chinese state TV reported that it bribed medical staff to boost sales of its infant formula at hospitals in a number of regions across northern China.

The latest allegations follow a report by China Central Television (CCTV) last week that Dumex, Danone’s milk powder business, bribed staff in a single hospital in the northern city of Tianjin to give its milk powder to new-born babies. Dumex said it expected to have a report ready by early next week.

“Dumex started the investigation as soon as we saw the news, and the report should be ready by October 1,” the company said in a statement, declining to comment on whether senior staff in China were aware of the payments.

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