Danone has labelled a lawsuit against the company from a trade union claiming to represent workers at its drinks venture in China “totally groundless”.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more


Reports in China claim that a Wahaha trade union has started legal action against Danone for allegedly holding shares in firms that compete directly against the French group’s venture.


Danone told just-food today (17 December) that it had yet to receive the legal papers but still dismissed the union’s claims. “Having not yet received the legal documents from the court, we are currently not in a position to provide a legal response,” Danone said. “However, based on the press report, our lawyer’s initial feedback is that this is a totally groundless claim.”


The lawsuit is the latest twist in Danone’s increasingly bitter dispute in China. Danone joined forces with Wahaha in 1996 and has a 51% stake in the original venture.


Relations between the two sides turned sour after Danone accused its partner of selling drinks under the Wahaha trademark outside the venture without permission.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In May, Danone filed for arbitration against Wahaha in Sweden in a bid to resolve the dispute.


Last week, a court in Hangzhou ruled that the period under which Danone could file its case against Wahaha had lapsed.


Danone said it still believed in an “amicable solution” to the dispute. “We urge all the parties to avoid taking any actions which will further intensify or complicate the situation, and work together aiming to bring about an amicable settlement as soon as possible.”