March 30, 2016 / 1:21 AM / 4 years ago

Danone ends sale of Karicare infant formula in China

WELLINGTON, March 30 (Reuters) - Danone Nutricia has cut sales to China of a baby formula brand that was caught up in the 2013 botulism contamination scare, the company said on Wednesday.

“Danone Nutricia has recently stopped supplying Karicare,” a Danone Nutricia spokeswoman said in an email, referring to the company’s China sales of the New-Zealand made infant formula.

Danone Nutricia, a unit of Paris-based multinational food company Danone, recalled some types of infant formulas sold under the Karicare brand in 2013, after its milk powder supplier Fonterra said there was a risk of bacteria in its products that could cause fatal botulism.

Fonterra later said the scare was a false alarm.

Danone said in court proceedings against Fonterra that the recall had caused an estimated 350 million euros ($395.29 million) in lost sales.

An arbitration between the companies has been heard in Singapore since February.

Danone Nutricia said it was now focussing on developing its two other baby formula brands, Aptamil and Nutrilon, in the Chinese market and that Karicare would continue to be sold in Australia and New Zealand.

$1 = 0.8854 euros Reporting by Charlotte Greenfield; Editing by Stephen Coates

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