The performance in China is impacted, frequently eat regulatory tickets, Abbott milk powder is facing internal and external problems

Recently, Abbott, a global medical and health industry giant, has caused public opinion hotspots for a “flavored” milk powder ticket of more than 9 million yuan. Abbott responded that the relevant punishment stemmed from its first batch of infant milk powder to detect trace vanchide during the sampling inspection of the General Administration of Market Supervision last year. At present, the company has completed product recycling work.

The Beijing News reporter noticed that this is the largest penalty received by Abbott Shanghai in recent years. Since 2018, Abbott has been punished by the regulatory authorities for violating the relevant provisions of the advertising law, and the cumulative penalty amount has reached 11.471 million yuan.

At present, what really troubles to Abbott is the downturn in the baby’s baby milk powder business. Since 2019, Greater China has lowered the overall performance of their child’s nutritional business, and the organic single product “Abbott Ceremony” has encountered the co -competition of domestic and foreign brands.

According to channel merchants and industry insiders, Abbott infant milk powder has performed “tepid” in China in recent years. Although organic milk powder and special medical foods have maintained their growth, the sales of traditional currency products have declined. It also made Abbott miss the best time to sink the third and fourth -tier market.


On May 19, Abbott responded to the Beijing News reporter that the company can only provide this penalty statement. Essence

Abbott accepts the biggest ticket in China in recent years

Tianyancha shows that the Shanghai Market Supervision Bureau shall impose administrative penalties on the Abbott Trade (Shanghai) Co., Ltd. on May 6, 2021. The punishment content includes “confiscation of items, which confiscation of about 3.437 million yuan in illegal income and a fine of about 9.0931 million yuan.” It is “pollution such as food such as packaging materials, containers, transportation tools, etc.”. This is also the largest penalty for food safety risks in China in the past 4 years.

A statement issued by the Abbott on May 16th showed that the punishment was related to the trace amount of citronin in the first batch of baby milk powder last year. A batches of the African Platinum Younemei 1 Formula Milk Powder (batch 18042NT, production date June 3, 2020, 900 grams) in the market supervision bureau in December 2020 to detect extremely small trace incense, At present, the company has completed all the recycling of the market reserved products.

According to the interpretation of the regulatory authorities, cottonin is widely used in various perfuel foods that need to increase milk aroma. Use according to standard requirements will not cause health harm to the human body, but a large number of intake can cause symptoms such as dizziness and nausea. In severe cases, it will be severe. Cause liver and kidney damage. “Standard for the use of food safety national standard food additives” stipulates that no food fragrances must be added to the formula foods of babies 0-6 months (segment 1). Chanlan.

Regarding why the batch milk powder contains cicada, the Abbott explained that “no addition”, and the detected extremely small amount of cicada is caused by the fragrant Lanlan products produced before this batch. Attology also emphasized that according to the evaluation method of the World Health Organization (WHO), the possibility of food safety risks in the batch of products involved in the batch of products involved was extremely low.

Cumulative fined 1,147,200 yuan in 4 years

In fact, this is not the first time Abbott has eaten a ticket in China. Tianyancha shows that since 2018, Abbott has been punished by regulatory authorities many times for using disease treatment or medical terms in product advertisements, and currently has been fined 11.471 million yuan.

In October 2020, Shanghai Yangpu District Market Supervision Bureau announced that due to the use of a popular movie and starring of the Abbott medical product “Xiao An Su” to publish video advertisements on Douyin, it violated the advertising law review regulations and was undergoing 1.9481 million yuan for the advertising law review regulations. fine.

In March 2019, a batch of Abbotts Constellation Pure Children’s Formula Milk Powder released the “2 core nutritional ingredients on the official website, RRR enhanced the brain nerve connection as high as 81%, OPO promoted key nutrient absorption as high as 97%” and “nucleotide” The advertising term that can enhance the immunity of the baby “has the problem of inaccurate expressions and the use of medical terms without authorization, and is fined 200,000 yuan.

In November 2018, Abbott was fined 100,000 yuan for the treatment of disease treatment functions in the advertisement, as well as the words that confused the use of medical terms or the use of medical terms or the medical equipment that were prone to the market. In June of the same year, “Abbott Quan An Su Quan Nutrition Formula Powder 900G Gift Box” was used on the promotion of “improving immunity by 13.4%”, “average hospitalization time shortened by 21%, a average hospitalization fee of nearly 21.6%, and the probability of admission again. Reduced advertising terms such as 6.7%, promoting the health care function of ordinary food advertising and involving disease treatment functions, and was fined 14,000 yuan.

Once involved Botox oolong incident

According to public information, Abbott has carried out business in China for nearly 30 years. In addition to the establishment of a Chinese headquarters in Shanghai, 16 offices, 4 factories and 2 R & D centers have been established. Since 2010, Abbott has continuously invested in the Chinese market, covering nutritional products, medicines, medical devices and diagnostic products. In 2014, Abbott invested $ 230 million in nutritional factories established in Jiaxing, Zhejiang, which is also the largest project in China.

In the opinion of Dairy expert Song Liang, Abbott with a strong medical background has the research and development capabilities that surpassed many milk powder brands at home and abroad. The good reputation of the market began to decline.

In August 2013, the former General Administration of Quality Supervision, Inspection and Quarantine reported that the two batches of infant formulas produced by Abbott (Shanghai) Trading Co., Ltd. had risk of being contaminated with Botox. Abbott issued a statement at the time that all products supplied to the Chinese market did not use constant natural polluting milk protein powder, but after constant natural confirmation, there were two batches of Abbott gold children in the Chinese market. Duan Listening Milk Powder is packaged on the packaging line of Hengnan Company. The production line starts the packaging Abbott product without thoroughly cleaning after use, so it is decided to prevent related products and destroy it.

Subsequently, the Primary Industry of New Zealand proved that the Botox pollution was an oolong incident after testing, but according to media reports, the two major foreign milk powder brands of Abbott and Domace at that time, the product recall and destruction of more than 100 million yuan.

In April 2016, Abbott encountered fake milk. According to the information of the highest procuratorial official website, the Shanghai Public Security Department investigated and dealt with in September 2015 to investigate and deal with it in accordance with the law. Criminal suspects acquired low -end, cheap or non -infant milk powder through imitation counterfeit brand milk powder tanks and trademark labels, and sold them in canned some of them. A total of more than 17,000 cans of counterfeit milk powder were produced and sold, and the illegal profit was nearly 2 million yuan. On April 4, 2016, the former Shanghai Food and Drug Administration referred to the case on the official website as “production and sale of counterfeit ‘Abbott’ milk powder.”

Challenge in Hua milk powder business

Despite a series of external storms, it is the continuous downturn in the infant milk powder business in the Chinese infant milk powder.

According to the financial report, in 2017, the sales sales of Abbott overseas children’s nutrition business declined due to the challenges of emerging markets, but some of them were offset by the growth of the Chinese and Indian markets. In 2018, thanks to the growth of market growth in Asia and Latin America, the sales sales of Abbott overseas children’s nutrition business have increased. But since 2019, Abbott has been exposed in the business issue of China milk powder.

In 2020, Abbott’s annual sales reached US $ 34.608 billion, an increase of nearly 10%year -on -year. Excluding the impact of exchange rates, the sales of overseas market sales of children’s nutrition business fell by about 4.1%.

Abbott said in the 2020 financial report that in the past three years, Abbott’s global nutritional product business has been actively affected by many new products, including breast milk hypotonal (HMO) and high protein products. Driven by related products, Abbott’s nutritional business increased by 0.3%and 3.4%in 2020 and 2019 (excluding foreign exchange effects), but the growth of multiple markets in the United States, Asia and Latin America was offset by challenges from Greater China. Essence

In the first quarter of 2021, Abbott’s global nutritional business sales increased by 6.9%, an organic increase of 6.4%. Among them, the growth of children’s nutritional business was adversely affected, sales decreased by 2.1%year -on -year, and sales of overseas markets decreased by 2.3%year -on -year. Abbott explains that this is mainly due to the increase in purchases in advance in the first quarter of 2020 due to the increase in the epidemic (which leads to a higher base).

Song Liang believes that the decline of Abbott’s performance in China, in addition to the decline in the birth rate of newborns, fierce market competition, rising domestic milk powder, and previous botulinum bacteria Uolong incidents and milk powder, the biggest problem lies in the miss of the third and fourth -tier market Sinking opportunities.


According to Song Liang’s understanding, unlike foreign brands such as Wyeth and Mead John, Abbott mainly commissioned the “national dynasty” in the offline market to do it instead of the company directly cooperated with dealers from various places. “There is a problem with this method. While recommending Abbott milk powder to dealers from various places,” Guo Dynasty “often sells other high -grown products.”


This statement was confirmed by a channel dealer in Central China. In his opinion, manufacturers can work directly with agents from various places, and they can use resources and teams to do better services, and brand penetration is better. And to the “Guo Dynasty”, the profit must be taken away by 10%-20%before reaching the regional agent. The “national dynasty” itself must make money, and there are often more high gross products in their hands. Abbott’s brand traffic has not been taken to retail stores. In addition, “the” national dynasty “did not dare to raise too many teams, because there will be risks without business”, which also weakens the sinking efforts of the product to a certain extent.


According to this channel dealer, the core market of Abbott’s core market is “sinking well” in most mainland cities in the coastal cities such as Beishangguangshen and Jiangsu, Zhejiang and Shanghai, and lack of drainage solutions and market maintenance personnel. “Other foreign brands basically dock the plan with our purchaser every month, but there is almost no Abbott, but there are occasional purchase preferential activities. In my store, Abbott milk powder is available. Customer needs. “

Judging from its public market strategy, Abbott seems to have put more energy on product development and pushing new in recent years, and rarely mention specific channel play. In contrast, although channel sinking is a common problem for other foreign milk powder brands, each of them has proposed specific measures. For example, Wyeth released the new “Zhenlang” product in June 2020, which adopted territorial operation and focused on channel control. The “mother -in -law” milk powder series of Fishlan also adopted similar operations.

Organic milk powder market competition has intensified

A person familiar with the matter revealed to the reporter of the Beijing News that in the past two years, Abbott milk powder has made a lot of adjustments in China, and gradually abandon the gameplay gameplay used by foreign brands. At present, the level of channel inventory is relatively healthy. Organic milk powder and special medicine foods represented by representatives have developed rapidly, but the sales of traditional conventional currency products have declined. “Overall, Abbott milk powder is not tepid in the Chinese market, including about 5 billion yuan in the internal revenue in special medical foods.”

The “Analysis of the proportion and pattern of domestic and foreign -funded formula milk powder markets in 2019” released by Zhiyan Consulting shows that after the launch of organic milk powder in the Chinese market in 2015, Abbott’s share in the organic market reached the first. As the ordinary formula milk powder market tends to be saturated, the special powder market has become a new blue ocean. At that time, Abbott’s ultra -high -end organic milk powder, special formula milk powder, etc. in the Chinese market accounted for half of the Chinese market.

However, with the major brands scrambling to enter the game, Abbott’s domestic organic milk powder market share is gradually eating. In 2019, Yili launched the Golden Crown Crown Sina Mu Organic Milk Powder. In March 2020, Junlebao launched an organic infant milk powder “Youcuo”. The order in the first month of trial sales exceeded 120 million yuan. After the discount, the price was about 100 yuan cheaper than Abbott Jing. In the same year, Bishengyuan renovated its organic milk powder. In May 2021, Wyeth Qifu signed a strategic cooperation agreement with Jingdong Supermarket to jointly promote the operation of the category of milk powder categories such as big children and organic and organic.

According to the above -mentioned persons, before 2019, Abbott Ceremia has always maintained its share in the domestic organic milk powder market. Song Liang believes that Abbi Jing’s contributed share has been organically surpassed by Wyeth Qifu.

On the special medical track, Barbara Marriage, a global special formula science officer in Abbott, said in March 2019 that all 6 special medical use products of Abbott have been approved in China, and special formula nutrition products will become the fourth in Abbott. Independent e -commerce store.

According to the statistics of the China Nutrition Health Food Association, the total consumption of special medical foods in the world is 56 billion yuan to 64 billion yuan each year, and the market size increases at a rate of 6%per year. Nielsen data predicts that the sales of the Chinese special -equipped product market will continue to grow, and the compound annual growth rate of milk protein allergies will reach 20%. At present, the market capacity is about 1.2 billion yuan, and it is expected to reach 2.2 billion yuan by 2021.

However, in Song Liang’s opinion, the overall plate of the special doctor’s milk powder is still smaller, and it is difficult to reverse the decline of Abbott milk powder. In the eyes of the industry, Abbott has fallen out of the “four major fans”.

In response to the above issues, Abbott responded on May 19th that the Beijing News reporter said that only what the company can currently provide is the relevant statement of the punishment. “For”.

Screenshot of the official website of the Beijing News reporter Guo Tie Photography Guo Tie Picture Source

Edit Li Yan school against Wang Xin

Source: Beijing News

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