Danone considers calling time on Dumex infant products in Vietnam

13-Sep-2016 - Last updated on 14-Sep-2016 at 11:16 GMT

The Dumex brand had experienced a torrid couple of years due to unfounded food safety scares. ©iStock

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Danone is reported to be considering a gradual withdrawal of its Dumex infant nutrition products from Vietnam.

According to coverage in the local media, Dumex’s market share is not deemed to merit further investment in the country.

It is believed that a phased withdrawal is taking place, with Dumex products likely to be available until early next year.

Operators in Vietnam have been hit by a government-introduced price ceiling on infant nutrition products, and public health campaigns to encourage breastfeeding.

Safety scares

Last year Danone sold its Dumex China business to the Yashili International Group, a firm in which is holds a 25% stake, in a $159m deal.

The Dumex brand had experienced a torrid couple of years due to unfounded food safety scares.

Dumex China saw its net sales plummet to $203.2m in 2013 from $890.8m in 2012, after a food safety scare in 2013 hit the brand's reputation with consumers. The scare, linked to New Zealand supplier Fonterra, was later shown to be unfounded.

"By bringing the Dumex and Yashili brands closer together, the operation will build a strong local infant milk formula (IMF) brand platform," Danone said at the time of the China deal.