Nestle SA says it will cut infant formula prices in China by an average of 11 per cent from Monday in response to a probe into alleged price-fixing by several foreign companies.
Nestle spokesman Jonathan Dong said today that the price cuts by the company's Wyeth Nutrition unit will be maintained through 2014. Prices of some products will be cut by up to 20 per cent.
China's National Development and Reform Commission is investigating five foreign companies, and one Chinese company, for allegedly violating market competition laws by manipulating retailers to sell infant formula at inflated prices.
The other foreign companies Danone Dumex, Abbott Laboratories, Mead Johnson Nutrition Co. And FrieslandCampina did not immediately respond to questions about whether they also were lowering their prices.
