China Probes Juice Makers into Allegations of Processing Rotten Fruits09-24 11:24 Caijing
China's food regulator has launched an urgent investigation into allegations against several home juice makers that reportedly use cheap rotten fruits for production in the country's latest food scandal, highlighting increasing concerns over food safety among the public.
Reports said some juice factories based in central China's Anhui purchased bad fruits for 0.4 yuan($0.07) per kilogram to make fortified juice as part of their cost-saving measures.
China Food and Drug Administration has visited the factories and urged immediate rectifications, according to the official Xinhua.
A factory of Huiyuan Juice Group, the largest juice producer in China and once the buying target, is among the three companies involved in the scandal blown off by Chinese media.
Shares of the other two, Haisheng and Andre, both listed on the Hong Kong Stock Exchange, were suspended trading Monday while Huiyuan plunged 5 percent.
Haisheng, which reported over 1billion yuan ($16million) in first-half revenue, represents 27 percent of China's juice exports to the United States and Canada. Taiwan beverage giant Unit-President owns 16 percent stake in Andre.
Huiyuan, which gobbles up 60 percent share of China’s juice market, dismissed the reports later in a statement, saying it has controllable manufacturing chains and its products quality is guaranteed.
China's ministry of commerce in March ruled against Coca Cola's $2.4billion acquisition proposal on competition grounds, a move denounced as a protectionism move.
Huiyuan opened higher Tuesday and rose over 3 percent in morning trading.
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