France’s Group Danone SA has been rebuffed by Hangzhou’s Wahaha Group, in which it has a 51% stake, in its attempt to acquire the beverage company.  Danone currently has five join ventures with Wahaha, and the companies have an agreement that prevents Wahaha from competing with Danone’s products.

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China's long summers generally do not spur a surge in ice cream consumption.  However, the market's potential is luring many local and foreign giants to accelerate their efforts to penetrate various segments, driving out small and mid-size labels in the process.

With the Chinese government actively offering incentives to encourage mainland food and beverage makers and service providers to restructure internally, Bright Dairy and Food Co Ltd is expected to list the company as a whole to become a flagship asset to its parent group, Bright Dairy Corporation.

Eili Group has announced strong financial results for the first three quarters of 2006. With a 37.76% year-on-year increase in its major business revenue to 12.48 billion yuan (156 million US dollars), Eili continues to lead China’s dairy industry. Such profitable financial performance is a result of the company’s brand building efforts and launch of high-end dairy products that are proved to be appealing to Chinese public.

Chinese traditional culture sees food as one of the roots of life. As an important industry in the national economy, China’s food companies have proved to be uncompetitive when compared to their multinational rivals, which have greater financial resources and advanced technology.  As more global food giants push for more expansion in the Chinese market, how can the Chinese food industry overcome its internal weaknesses?

Recent supermarket shelves have saw the introduction of various kinds of high-end milk products by the three Chinese dairy giants, Bright Dairy & Food, Eili and Mengniu. With the launch of fresh milk products that emphasize their high quality and nutritional value, the three dairy giants are trying to diversify their product offerings to satisfy consumer demands in different market segments. 

Mengniu Dairy reported a 39 percent year-on-year jump in its first-half net profit to 343 million yuan (42.875 million US dollars), boosted by increased sale of liquid milk products, The Standard reported.

Mengniu registered “Sour sour milk”, which literally means 'yogurt' in Chinese, as a patent, which stirred up legal battles between the company and other dairy giants, China Youth Daily reported.

While China’s dairy sector has shocked both the  domestic and international communities with its rapid growth and expansion, it needs caution and effective risk management measures to survive future challenges, China News reported.