Fonterra’s Chinese business partner Beingmate has been financially damaged by a case of alleged milk powder tampering, causing it to forecast a loss of up to $48 million for the first quarter of the financial year…Full Article: Stuff.co.nz July 2016
- Beingmate had projected a NZ$21 million profit, but revised this figure to a NZ$44.5 million to NZ$48 million loss in the wake of a counterfeit infant formula scandal.
- In April 2016, a Beingmate Baby & Child Food authorized dealer was found selling fake/counterfeit Beingmate (China), Abbott Laboratories (USA), and Vitacare (New Zealand) infant formula products. The arrested dealer was authorized to sell products from Beingmate Baby & Child Food Co. Ltd., which is based near Shanghai in Hangzhou. From August 2014 to May 2015, the Beingmate-authorized dealer repackaged high-priced branded products with lower-priced product, and then sold the counterfeit products to retailers in Zhengzhou (Henan Province) and Hefei (Anhui Province).
- In March 2015, Fonterra purchased an 18.8% stake in Beingmate Baby & Child Food Co Ltd. At the same time, Fonterra’s Chief Executive announced plans to invest NZ$1.5 billion (US$1.13 billion) in China and boost its production capacity to 1 billion liters by 2020.
- In January 2015, China’s Ministry of Commerce approved Fonterra‘s request to purchase a 20 percent stake in Beingmate.
- In August 2014, Fonterra announced plans to purchase a 20% stake (US$467 million) in Beingmate (based in Hangzhou, Zhejiang Province). Beingmate in return would hold a 51% stake in Fonterra’s Gippslands milk powder factory in Victoria, Australia (near Melbourne).
- In April 2013, Fonterra stated it hoped to export its infant formula (e.g. Anmum Infant and Follow-On Formula) to mainland China by mid-2013. As of April 2013, Fonterra managed two milking farms in Hebei province and planned to open an additional three farms shortly thereafter. Fonterra intended to have a Chinese milk production capacity of 1 billion liters per year by 2018.
- Established in 1992 and headquartered in Hangzhou, Zhejiang province, Beingmate Baby & Child Food (SHE:002570) produces and distributes infant food including milk substitutes, weaning foods and dietary supplements. The company also supplies toiletries, baby beddings, strollers, textiles and children’s toys.