Fonterra has managed to sell only 1% of its stake in the troubled Chinese company Beingmate.
The product is now in at least 10,000 stores in China, on all the major e-commerce platforms and is one of the top performers in Beingmate’s range.
The co-op says the 80,000 retail stores touted at the launch of the joint venture was a reference to Beingmate’s footprint in China.
“However, as Anmum is a premium brand, Beingmate has decided to focus on 10,000 stores to reach the right target consumers.”
Fonterra says claims about uncompetitive pricing structure are “false and misleading”.
“As the exclusive general distributor, Beingmate sets the recommended retail price for Anmum; RRP is based on the competitive market dynamic.”
Fonterra also refutes claims that it hasn’t done enough to market Anmum in China.
“This is false and misleading because under the terms of our distribution agreement with Beingmate they are responsible for Anmum brand building activities.”
Beingmate, facing financial issues, has seen its share price dropped to 5.31 RMB (NZ$1.14) this month.