5 Jul 2013

Baby milk firms to cut price of China milk

5:56 am on 5 July 2013

Nestle and Danone say they will cut prices of some of their infant milk formula products in China.

The National Development and Reform Commission on Wednesday began an inquiry into complaints of price fixing by foreign infant milk makers.

Nestle, Danone, Mead Johnson Nutrition and Abbott Laboratories are among the companies that are being investigated.

The BBC reports Wyeth Nutrition, a unit of Nestle, will slash prices by as much as 20%. Danone said it was co-operating with the inquiry and was preparing a price-cut proposal.

Nestle also added that it would not raise prices of any new products over the next year.

According to some estimates, foreign brands now account for about half of all infant milk sales in China.