ZURICH, July 5 Wyeth Nutrition, the infant
formula company Nestle bought last year, is cutting its prices
in China after the country put five foreign infant milk formula
companies under investigation for possible antitrust violations.
Wyeth Nutrition said in a statement it had been actively
cooperating with China's National Development and Reform
Commission (NDRC) and was responding by cutting its prices and
improving sales and marketing practices, without giving details.
"Wyeth Nutrition decided to implement a price reduction of
key products from July 8 through 2014. The average reduction
will be at 11 percent with the biggest single product price
reduction at 20 percent," it said.
The other companies under investigation are Nestle SA
, Abbott Laboratories, Mead Johnson Nutrition
Co and Danone's Dumex brand.
Foreign infant formula is a highly coveted item in China
after a 2008 scandal when tainted infant formula from a domestic
provider left at least six children dead and damaged public
trust. Foreign brands now account for about half of total sales.