Wednesday, October 24, 2007

Mengniu replaces Nestle at KFC


Leading dairy producer Mengniu from Inner Mongolia books another solid success as it replaced Nestle as supplier at KFC. Nestle had been KFC's supplier in China for twenty years, said the China Daily.
The article suggested that Mengniu would offer lower prices, but none of the three companies involved was prepared to discuss the reasons for the China. Chinese companies pushing out foreign companies from the domestic market is nothing new. Whether Chinese companies can do the same outside China remain to be seen, but many companies seem to be happy at this moment in covering the Chinese market only.

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