French food and beverage maker Groupe Danone SA said yesterday
that the chairman of its joint ventures with Wahaha, China's
largest beverage producer, resigned on Wednesday amid a dispute
that has damaged a 10-year partnership.
In a statement yesterday, Danone said it has accepted the
resignation of Zong Qinghou, Wahaha's founder, and appointed its
managing director for Asia, Emmanuel Faber, as interim head of the
ventures.
"Groupe Danone has stuck to the principle that we are dedicated
to the joint ventures with Wahaha, its brand and development of
employees for the past, now and future," Faber was quoted as saying
in the statement.
"Danone promises the joint ventures' employees will not be
affected by the issue in terms of their employment, benefits and
treatments, working and living conditions, as well as personal
development," he added.
The joint venture employees and distributors had shown their
support to Zong and boycotted the attempted acquisition of Wahaha's
non-joint ventures for 4 billion yuan in April. Wahaha's spokesman
confirmed Zong's departure yesterday.
Danone, which owns a 51 percent stake of the joint ventures with
Wahaha, alleged that Wahaha breached contract by selling beverages
that compete with products of the firms' joint ventures.
(China Daily June 8, 2007)