Eyes online, milk powder firms count cost of China probes
Stung by bad press, foreign milk powder firms are scouring mainland social media to assess the fallout of scandals in a bid to restore their image
Global milk powder firms are scrutinising mainland social media reports up to four times a day to gauge consumer reaction to a high-profile pricing probe and food safety scare that threaten their squeaky-clean image in the US$14.5 billion Chinese market.
Chatter about food safety scares spreads lightning-fast on Twitter-like Weibo, so companies are learning to keep constant tabs on their online brand reputation.
"We work with a number of clients in this sector and we've been busy, very busy, over the last couple of weeks," said a Chinese-based senior executive at a social media analytics firm.
He asked not to be identified because the firm is working with industry brands including those owned by Fonterra Co-operative Group, Danone and Nestle.
Earlier this month, five international milk powder firms and one Chinese company were fined a record US$110 million after a probe into price fixing in the sector, while a botulism scare at New Zealand dairy giant Fonterra tarnished the wider reputation of imported milk powder.