Fonterra Apologises to Chinese Consumers Over Contaminated Milk Powder, Company’s Shares Trade 4.1% Lower at NZ$6.83 (VIDEOS)
Fonterra Chief Executive Theo Spierings apologised on Monday to Chinese consumers in a media conference for the contaminated milk powder from its Waikato factory that reached China.
The contaminated milk powder came in three batches of whey protein used for making infant formula and sports drinks.
"We regret the distress and anxiety which this issue could have caused ... Parents have the right to know that infant nutrition and other products are safe," The New Zealand Herald quoted Mr Spierings statement. The media conference was aired live on the Reuters livestation Web site and translated into Chinese.
The Fonterra CEO flew to China to address the situation and appease China, Fonterra's biggest market for milk powder.
To assuage Chinese consumers, Mr Spierings said that Fonterra has a very high commitment to China. "It is very important for me to be here in person to reassure the republic of China," he added.
The botulism scare caused by the discovery of the contaminated whey resulted in shares of Fonterra's Shareholders Fund plummeting to as low as 8.7 per cent of Monday before it settled at 4.1 per cent lower at NZ$6.83.
The contaminated whey also reached Coca Cola China and local food company Wahaha. But Mr Spierings said the milk powder sold by the two companies is safe due to the heat it was manufactured.
Coca Cola said it quarantined 10,505 pounds out of 10,560 pounds of whey protein it received from Fonterra, but used 55 pounds to produce isolated batches of Minute Maid Pulpy Mile product it makes.