Milk powder marketing leaves sour taste in China

China Mengniu Dairy

23/02/2022 08:53

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
    HONG KONG, Feb 23 (Reuters Breakingviews) - Infant-milk
formula makers use aggressive marketing that could discourage
breastfeeding, despite a World Health Organization code
recommending members carefully regulate promotion, according to
a new WHO report. China, the world’s largest, is worst hit, with
97% of mothers targeted. 
    The findings don’t name names, nor do they have much legal
teeth. Just 25 countries have fully implemented the code as law.
But Beijing, which does not enforce the WHO guidance, has been
cracking down on irresponsible advertisers in areas like
healthcare. Official efforts to boost birth rates make mothers’
and babies’ welfare an even more urgent priority for
policymakers. 
    Local dairy giants China Feihe  6186.HK , China Mengniu
Dairy  2319.HK  and Inner Mongolia Yili Industrial  600887.SS 
will have the most to lose. Marketing is critical to their
strategy: $12 billion Feihe’s campaigns, for example, included
hosting 400,000 seminars for mothers and mothers-to-be in the
first-half of 2021 alone. That helped its Firmus brand become
the country’s bestseller last year, according to Euromonitor, as
the company grew market share to 22%, from 7% in 2017. Those
tactics could start souring fast. (By Katrina Hamlin) 
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WHO report    https://www.unicef.org/media/115786/file/Multi-country%20study%20examining%20the%20impact%20of%20BMS%20marketing%20on%20infant%20feeding%20decisions%20and%20practices,%20UNICEF,%20WHO%202022.pdf
Breakingviews: Baidu shows health is a huge flashpoint in China 
  https://bit.ly/3JLuRKR
China Feihe 2021 Interim Report    https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0916/2021091600634.pdf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Robyn Mak and Thomas Shum)
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