Mead Johnson cutting China infant milk prices amid probe
(REUTERS) - Mead Johnson Nutrition Co said on Wednesday it will cut the price of its infant milk formula in China, becoming the latest company to take action in the wake of an investigation by Beijing into possible price-fixing and anti-competitive behaviour.
Mead Johnson, the maker of the Enfamil brand of baby formula, said it will reduce prices by 7 per cent to 15 per cent as of July 16. It will also launch new promotional campaigns aimed at reinforcing the trust and support of Chinese consumers.
In recent weeks, companies including Mead Johnson, Danone , Nestle, Abbott Laboratories and Hong Kong-listed Biostime International said they were being investigated by China's National Development and Reform Commission.
Danone has since said it cut prices by up to 20 per cent, while Nestle cut prices by an average of 11 percent and pledged to freeze prices on new products over the next year.