China's biggest dairy companies are raising prices in the new year, with one industry expert saying they need more money for public relations in the wake of several scandals.
Customers receiving deliveries of Sanyuan milk were told the price of a 200-millilitre bottle of milk or sour milk would increase 20 fen, starting yesterday. The old price ranged from 1.90 yuan (HK$2.31) to 2.50 yuan.
'We decided to adjust product prices, starting on January 1 because increased labour and logistics costs and expensive raw materials have caused operational difficulties,' Sanyuan said in a note to customers.
'We apologise for the inconvenience.'
An unidentified Sanyuan executive told The Beijing News that nine ultra-high-temperature products would also see their prices increased, adding 'it is a choice we had to make'.
Several supermarkets in Beijing told the newspaper they had been informed in writing of price rises by Sanyuan and Mengniu and that Yili, another dairy giant, had also given them notice, but not in writing.
However, an unnamed Mengniu Beijing sales executive told the Caixin.cn news website that 'Mengniu would not increase prices' and it was not possible that supermarkets had received such a notice.