Jin Bo
Oct 22, 2010

Mengniu apologises to Yili in defamation scandal

BEIJING – In a statement released this morning, Chinese milk giant Mengniu apologised to its biggest competitor, Yili, after police confirmed the arrest of an employee for defaming the latter online, but adds that it was under similar attack from Yili seven years ago.

Mengniu apologises to Yili in defamation scandal

An Yong, a product manager from Mengniu's liquid milk division, was arrested by local police in Inner Mongolia earlier this month, where both companies are based, for spreading stories hinting one of Yili products, QQ star (pictured) might contain a potential health hazard.

In the statement, Mengniu argues that the defamation was An Yong's "individual behaviour", and neither the company nor any member of its management was aware.

Mengniu revealed that An Yong was a Yili employee before he joined Mengniu in 2005. The case also involved Beijing-based PR agency Bosse which has a close partnership with Mengniu.

Between 2003 and 2004, Mengniu said, Yili hired Beijing-based brand agency Weiwan to spread negative stories about Mengniu via mass media in 11 cities. Wewan's general manager and two other employees were later arrested, but the case never made the news.

Mengniu and Yili have been in fierce competition for a decade. The latest episode has drawn attention to the country's public relations industry.

"There have been a lot of filthiness like this, which has made PR not a respectable industry in China," said Li Yixin, executive director of Mandarin Communication.

He said the Mengniu case could be a warning to the PR industry in China and an opportunity to make changes.

"PR should get the respect it deserves," he said.

Source:
Campaign China

Related Articles

Just Published

11 hours ago

TikTok commercial lead: 'We don't want to take the ...

Sofia Hernandez, global head of business marketing and commercial partnerships, spoke to Campaign about the importance of agencies.

11 hours ago

Predictability is power, but only when business ...

Trust and predictability are practical tools for navigating complexity, but leaders must be steady, not static, says Edelman's CEO for Hong Kong, Taiwan and Singapore.

12 hours ago

Agency Report Card 2024: PHD

With robust retention rates in 2024 and an expanding presence in China, PHD had a league-topping year. But with new business wins on the slow and an impending merger, it remains to be seen how the agency can overcome incoming challenges.

13 hours ago

Meta expands Advantage+ with Gen AI ad creativity ...

Meta has enhanced its Advantage+ advertising platform with new generative AI tools designed to help advertisers create personalised, brand-consistent ads at scale.