Danone Dumex cuts Chinese infant formula prices by up to 20%


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Danone Dumex cuts Chinese infant formula prices by up to 20%

Related tags Infant formula Price

Dumex – Danone’s infant nutrition business in Asia – has announced plans to reduce the price of its infant formula products in China by up to 20% in response to an investigation into its and other manufacturers’ pricing practices in the country.

In a statement sent to DairyReporter.com earlier today, the company said that starting tomorrow (9 July), the sale price of its infant formula products, including its popular Youjie range, will be reduced by between 5% and 20%.

The firm has promised to maintain these prices over the next year.

Dumex's price reduction mirrors action taken by Nestlé-owned Wyeth Nutrition, which announced plans last week to reduce the price of its infant formula product by between 11% and 20% from today.

These actions come in response to the launch of an investigation by the Chinese National Development and Reform Commission (NDRC) into high infant formula prices in the country and suspected anti-monopoly law violations by manufacturers.

5% to 20% price reduction

Following the launch of the probe, Dumex claims to have undertaken “an internal review”​ to “ensure that its operations are in compliance with relevant law and regulations.”

“To bring more benefits to Chinese consumers, Dumex announced its decision to cut prices on July 3, and plans to officially reduce the sales prices of its main products starting July 9,” ​said the company.

“These reductions will range from 5% to 20%, and we will do our best to facilitate their implementation with retailers as soon as possible,” ​it added.

Alongside Dumex and Wyeth, the pricing practices employed by Mead Johnson Nutrition, Abbott Laboratories, FrieslandCampina, Fonterra, and Chinese firm Biostime International are under review by the NDRC.

“Reinforce compliance” with regulations

On the back of this investigation, FrieslandCampina has also implemented a price reduction across its Friso infant formula range in China.


In a statement issued late last week, the Dutch dairy processor announced plans to reduce the price of its Friso products in China by 5%. The price cut is scheduled to come into force today (8 July).

“FrieslandCampina supports the NDRC’s objective to ensure fair pricing; the company will reinforce compliance with pricing and anti-trust regulations,”​ said the firm.

“To support Chinese consumers and offer more value, FrieslandCampina will per 8 July, 2013 reduce its price of the full range of Friso products in China by 5%," ​the company added.

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