The U.S. Department of Justice has officially closed an investigation related to bribery charges involving Mead Johnson Nutrition Co, the formula maker’s China subsidiary said Wednesday [29 July 2015], following an agreement reached between the company and U.S. regulators. According to a statement that Mead Johnson Nutrition (China) sent to the Global Times on Wednesday, Mead Johnson Nutrition Co has agreed to pay $12 million to settle charges with the U.S. Securities and Exchange Commission (SEC)…Full Article: ECNS.cn July 2015 Key Points

  • According to the SEC, from 2008 to 2013, Mead Johnson paid more than US$2 million in bribes to healthcare professionals in China’s State-owned hospitals in order to guarantee recommendations for its infant formula to new mothers.
  • In September 2013, Dumex Baby Food Co (subsidiary of Danone) also reportedly bribed healthcare professionals to promote their products. In April 2013, an estimated CNY 500,000 (~US$80,500) was spent on bribes by Dumex across seven provinces.
  • In August 2013, Mead Johnson was fined by China’s National Development and Reform Commission (NDRC) CNY 203.8 million (~US$33 million) for violating anti-monopoly laws.

ChinaAg Comment

  • In August 2013, China’s NDRC fined the dairy companies of Mead Johnson (US$33 million), Danone’s Dumex (US$28 million), and New Zealand’s Fonterra (US$645,000) for price-fixing and anti-competitive business practices.

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