Case review 

China's dairy giants are locked in a bitter battle after a leading industry player, Mengniu, was accused of fabricating product safety scandals through public relations company to tarnish the images of its rivals, Yili Group and Synutra International.

Rumors were circulating that Mengniu made up a story that spread online in July, which claimed Yili's infant formula contained fish oil that could lead to premature sexual development.

Mengniu also allegedly plotted a public relations campaign to create a milk powder scandal, in which Synutra products were reported to have caused baby girls to develop breasts.

Parents and doctors in Hubei were reported earlier in August voicing fears that milk powder produced by Nasdaq-listed Synutra International had caused at least three infant girls to develop prematurely. But the Ministry of Health announced later that it had found no evidence of contamination in milk powder after an investigation. [Full story]

Mengniu issued a letter on November 22, clarifying the smear scandal.

Full text: Mengniu's clarification letter

Latest Development 

•  Mengniu says sorry, and accuses
•  Smear campaign jeopardizes dairy industry
•  Mengniu denies trying to smear competitor
•  Smear scandal sours China's dairy image
•  Dairy executive under arrest in probe into false claims 

Profile of company involved

Mengniu Dairy (Group) Co., Ltd. (Mengniu Dairy Group) was founded in 1999 with headquarters in the center of the China Dairy Capital Shengle Economic Zone in Helingeer County of Hohhot, Inner Mongolia. [Full story]

Yili Industrial Group was founded in 1993 when its predecessor, Hohhot Muslim Dairy Food General Factory, implemented shareholding reform.Yili has 130 affiliated enterprises that produce more than 1,000 products under the Yili brand [Full story]

Synutra International Inc is a leading infant formula company in China. It principally produces, markets and sells its products under the "Shengyuan," or "Synutra," name, together with other complementary brands. 

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