Nestle, Danone among companies that can benefit from recent discovery of tainted milk at China's largest dairy company Mengniu Dairy Group, industry official says
January 6, 2012
– An industry official said that companies like Nestle SA and Danone could benefit from the recent discovery of tainted milk at China’s largest dairy company, Bloomberg reported Jan. 5.
Last month, regulators found toxins in the milk at Mengniu Dairy Group Co, which is part-owned by the government. This could prove to be a benefit for similar companies in the country, said Jessica Lo, managing director at China Market Research Group.
Lo said that the scandal would act as another black mark on the reputation of Chinese firms and that companies like Nestle and Danone would likely see an increase in sales.
The primary source of this article is Bloomberg, New York, New York, on Jan. 5, 2012.