Wahaha ups ante with plans for Euro5b lawsuit

As row with Danone escalates, drinks maker cites 'illegalities'

Hangzhou Wahaha Group, the mainland's largest drinks maker, stepped up a battle with joint venture partner Groupe Danone, saying it plans to sue the French food giant for up to Euro5 billion (HK$52.56 billion) for 'illegal activities'.

The companies are sparring over the use of the Wahaha brand as their decade-old beverage venture, of which Danone owns 51 per cent, crumbles. Danone, which produces Evian drinking water, accuses Wahaha of setting up independent companies to sell products identical to those sold by the joint ventures.

It is demanding a 51 per cent share of the non-joint venture businesses that are using the brand Wahaha, a Chinese word that mimics the sound of a laughing child.

Wahaha, which has produced a steady stream of public statements against Danone, since the disagreement became public this month, did not specify when and where the case would be filed.

According to Wahaha, the mainland company and its non-joint venture businesses can use the Wahaha brand freely, except when the joint-venture board disagrees or when using the name will hurt the brand value.

'We never received any notices from the joint-venture board that they didn't allow the use of the Wahaha brand by non-joint venture businesses,' Wahaha said at the weekend.