Wahaha wins latest round A Chinese arbitration body has ruled in favor of local beverage producer Wahaha Group in its legal wrangle with estranged partner Danone Groupe SA.
Danone & Wahaha: Bittersweet Partnership Case Solution
Lawyers divided over Wahaha deal The rift between Wahaha and Danone is deepening as Wahaha Group's partner filed a lawsuit against a JV director of Danone, saying he illegally serves on the boards of competing firms. Wahaha in troubled waters The water has hit turbulent times as it is now part of a bitter dispute over ownership of the well-known brand.
Wahaha sues Danone executive as feud flares Wahaha confirmed Tuesday they have lodged a lawsuit in Shenyang against an executive of Danone. Wahaha lays into Danone The once successful partnership model between Wahaha and Danone turned to Wahaha's fiercest attack ever against the French company yesterday - in front of roughly reporters from across the country. Danone threatened to file lawsuit A minor shareholder of a Chinese dairy maker sent a lawyer's letter to Groupe Danone, threatening to file a lawsuit against the French food and beverage giant for allegedly causing hostile competition and hurting other shareholders by investing in multiple Chinese beverage companies.
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They want to sell their products by creating a joint venture. This year, Danone reaches the turnover of They perform a joint venture in China with a large partner: Wahaha, China's leading beverage with the president Mr. Zong Qinghou one of the richest man in China, who is also a member of the Chinese Communist Party, with many influence.
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So in February Danone started to conquer China with a new big partner size: Wahaha. Search and publish your papers. Login New user. My account.
Danone Wahaha A Bittersweet Partnership Case SWOT Analysis
We will write a custom case study sample on Danone v. The giant company would like to keep its dominance in decision making and resource allocation, thus could practice double standards, while dealing with its partner in the merger.
In such cases, the other party would not have any choice, but to seek legal means of addressing the stalemate. This is the exact situation in which Danone Food Company from France found itself in, as presented in this case, when it realized that its partner, Wahaha Beverage Company violated their contract. Considering the case, the shared operation gave Danone a 51 percent shareholding in the joint company. Since the company had become the leader in manufacturing and distributing bottled water, it considered having a working partnership with Wahaha Company.
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However, Danone realized that the latter company was bottling and selling drinks as a separate entity without informing its partner, thus violating the previously signed agreement. The businesses were almost related, thus the two companies agreed to work together in a non-competitive manner.
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In this regard, trading secretly in a similar business was against the spirit of the agreement because it could jeopardize the operations of the joint venture Hill The secret bottling and selling of drinking water could compromise the quality of the product, a situation that might have caused the production of much litres of water, which were seized for safety concerns. This raised issues of water quality that the joint venture was producing and Danone Company thought this was a form of betrayal in its business endeavor.
Here, the questionable water quality was linked to the operations of Wahaha Company, even though the reality about the bacteria that was found in the bottles. The other situation that the joint venture found itself in was the struggles between the competing interests, in which Danone considered its opponent to have violated the contract they signed, while Wahaha took its partner to be interfering with its operations and profitability.
The situation was complex because Wahaha applied for arbitration in the case whereas the opponent acquired a court order to freeze the assets of ten companies associated with Wahaha.
In this situation, once the contract was signed, it bound the two companies to comply with its provisions until they agree in writing to dissolve the contract Daniels, Radebaugh and Sullivan Therefore, whether the government approved it or not, each party accepted to work with one another in a non-competitive and mutual manner. Let's see if we can help you!
One of the strategic issues was to resolve the breach of contract that Wahaha Company secretly committed despite signing an agreement to work together without competition. In this case, a contract is binding and once agreed on must not be violated at all cost. The two entities agreed to work together and had to uphold the ethical issues regarding the contract Hill This was indeed hypocritical owing to the fact that he actually agreed to sign the contract to have a joint venture and not to compete with Danone Company products directly.
If he knew that the agreement was unfair, he could not have accepted the offer to work together and pursued his business interest alone.
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