That China is central to Hershey's challenges at the moment was underlined on Friday after the US confectioner booked a second-quarter loss of almost US$100m following an impairment charge on local subsidiary Shanghai Golden Monkey.
Mead Johnson's business in China has come under pressure and was a factor in the US infant formula group's profit warning earlier this month. Low dairy costs and downbeat consumer sentiment have sparked fierce competition on price and Mead Johnson is uncertain when conditions will ease. But it insists it is investing for long-term growth in the country.
Two significant announcements this week - from dairy giant Fonterra and from infant formula group Mead Johnson - further underlined how the impact of China's recent economic slowdown is affecting companies in our sector.
Compared to many food sector giants, Hershey's expansion on the international stage was relatively recent. Stepping up Hershey's presence overseas was seen as a way to unlock growth in rapidly-expanding…