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Second Danone unit investigates bribery claims

Internal probe follows report Nutricia baby food firm gave gifts to doctors at 14 Beijing hospitals

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Yoghurt produced by French Dairy Group Danone. Photo: Reuters

Danone will investigate allegations of bribery at a second baby-food unit on the mainland, where the French diary giant cut prices after being fined for violating anti-monopoly laws.

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Company spokeswoman Ada Zhao said that Danone's Nutricia China unit "has immediately launched an internal investigation" after reported it gave "improper advantages", including gifts and travel subsidies, to more than 100 doctors in 14 Beijing hospitals.

The allegations followed two separate reports this month from a state broadcaster, claiming that Danone's Dumex brand made payments to hospital doctors and nurses on the mainland to drum up sales.

The central government has sought to crack down on corruption in the country's US$350 billion health care market, probing multiple drug companies amid claims of doctors' involvement in malfeasance.

Nutricia gave benefits that were worth about 300,000 yuan (HK$378,000) to doctors at two Beijing hospitals between July 2010 and last month, the reported. The newspaper cited documents from an anonymous source.

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China Central Television similarly cited documents provided by an unidentified person this week when it reported that Dumex paid about 500,000 yuan to hospital staff in Beijing, Tianjin and five provinces.

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