China Business Daily (Reporter Zhou Ziyu) The U.S. Food and Drug Administration announced on February 18 that it is investigating complaints of four infants infected with Cronobacter sakazakia and Salmonella Newport.
The four infants were fed milk powder produced at Abbott's Sturgis, Michigan, U.S. plant under brands including Similac, Alimentum, and EleCare.
On February 20, the General Administration of Customs of China issued an announcement reminding consumers to "temporarily not purchase through any channels" and "immediately suspend consumption" of Abbott's related infant products.
The trust of Abbott milk powder, which once claimed to be of good quality, is gradually fading in the minds of consumers.
Repeatedly recalled due to quality issues
The General Administration of Customs announced that, after verification, the above-mentioned Abbott products have not been exported to China through general trade. For export records to China, Abbott China has initiated a voluntary recall.
The General Administration of Customs also reminds consumers not to purchase the above-mentioned infant formula milk powder through any channels for the time being; if anyone purchases relevant batches of infant formula milk powder from the company through non-general trade channels (such as overseas shopping), they will immediately suspend consumption; Those who purchase the above-mentioned special medical products should immediately suspend their consumption.
On February 21, Abbott China told a reporter from China Business Daily that among the products sold by Abbott in mainland China, only one product, Xikang Baby Tim, was affected by this incident.
Abbott China has initiated a nationwide voluntary recall of Xikang Baby Plus products manufactured at the Sturgis, Michigan, U.S. plant with a shelf life from April 1, 2022 (inclusive) to April 1, 2023 (inclusive). .
Other nutritional products sold by Abbott China in the mainland are not affected.
It is understood that Abbott has been recalled for milk powder quality problems in recent years.
In August 2019, the Philippine Food and Drug Administration announced that a certain batch of Abbott infant milk powder was recalled due to different "product label instructions and preparation scoop sizes", which may cause feeding risks; in September 2019, the Canadian Food Inspection Agency announced that, Abbott’s milk powder was recalled due to corruption and deterioration of a batch of infant formula for special medical purposes; on August 17, 2020, the Hong Kong Consumer Council notified the test results of 15 infant formulas, all of which contained the pollutant chlorine Propylene glycol, nine of which contain the carcinogen glycidol, which Abbott's products contain.
Sales in the Chinese market are shrinking
A reporter from China Business Daily searched on the special food information query platform on the official website of the State Administration for Market Regulation and found that there is only one special medical food registered by Abbott, and the name is Abbott Xi Kangbao Special Medical Purpose Preterm/Low Birth Weight Infant Formula.
That is, only this one of Abbott's special medical products can enter the Chinese market through general trade, and the rest of the products can only enter through cross-border and other platforms.
Abbott disclosed to a reporter from China Business Daily that the main sales area of Xikang Baby Tim is mainland China, but it has not responded to the provinces where it is mainly sold.
A reporter from China Business Daily searched various shopping platforms and found that Xikang Baby Tim was not available for sale at present.
Tang Li, founder of Hunan Daddy Love Pregnancy & Baby Co., Ltd., admitted to a reporter from China Business Daily that Abbott's special medicine products are mainly sold in medical channels, and the sales volume in the Hunan market is very small.
In his view, Chinese milk powder brands have risen in recent years, while the sales strategies and services of foreign milk powder brands have not changed much. The sales of several foreign milk powder brands in China are declining. In addition, Abbott has repeatedly experienced quality problems. Sales in the Chinese market have gradually shrunk.
The China Business Daily reporter also learned from distributors in Henan, Hainan, Fujian and other regions that Abbott's special medical food has not been well sold locally in recent years, and it is rarely seen in the market.
Tang Tiantian (pseudonym), a mother and baby shop owner near the hospital, told a reporter from China Business Daily that general special medical products are sold relatively well in mother and baby shops near the hospital, and many consumers who go to the hospital to see a doctor will stop by the door for mother and baby. Shop to buy Special Medicine products.
However, the sales of Abbott's special medical products in the past two years have not been very good, and Abbott even removed its office in her area in the previous two years.
A milk powder distributor in Henan who knows a large number of Douyin customers and physical store customers also revealed to a reporter from China Business Daily that Abbott's special medical products have very little sales in China.
Brand power trust takes another hit
How does this product recall affect Abbott?
Tang Li believes that the product recall has little impact on the market, but it is expected to have a greater impact on Abbott's brand power. Abbott has experienced product quality problems many times in recent years, and its brand vitality has been greatly damaged.
Liu Jiangwen, executive director of Nanguobao, told a reporter from China Business Daily that Abbott once claimed to be of good quality and reached the quality of drug lines, but with the occurrence of repeated recalls, consumers' trust in its products was deeply affected.
Dairy analyst Song Liang even said bluntly that repeated product recalls will inevitably cause a serious blow to Abbott's brand power.
In fact, since the Botox incident, Abbott has been continuously affected by food safety issues and formula doubts, and the vanillin incident has occurred, and its brand reputation has suffered a serious decline. .
It is understood that Abbott's business includes four major sectors: nutritional products business, pharmaceutical business, diagnostic business, and medical device business. Among them, the nutritional products business has been under pressure in the Chinese market in recent years.
In the performance report for the third quarter of 2019, Abbott stated that due to the challenging factors in Greater China, Abbott's overseas infant nutrition market revenue decreased by 2.4% year-on-year.
In the third quarter of 2020, Abbott said that in the international business of infant nutrition, the impact of challenging factors in Greater China offset the growth of its Southeast Asia business.