Chinese group Wahaha is set to seek arbitration in its ongoing dispute with French food giant and joint venture partner Danone.

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The move from Wahaha comes after Danone filed a lawsuit in the US against the Chinese company last week.


Danone has accused Wahaha and its former chairman Zong Qing Hou of manufacturing and distributing parallel products in breach of the companies’ joint venture agreements.


Countering this accusation, Wahaha has claimed that Danone “trapped” it into signing a joint venture agreement that restricted the use of the company’s brands.


Addressing a press conference in the Chinese city of Hangzhou yesterday (13 June), Zong said China’s trademark authorities never approved the agreement.

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Speaking to just-food today, Danone reaffirmed its position that an “amicable settlement” is still achievable. “We maintain that an agreement acceptable to both companies can still be reached. Negotiations are ongoing,” a spokesperson for the French company said.


However, as the rift between the two companies deepens, the possibility of an amicable settlement appears to be fading.

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