Jan 11, 2012 06:29 PM

Venture Capital Firm Says Nouriz Not a 'Fake Foreign Brand'


(Beijing) – A major venture capital firm defended its investment in Nouriz, a Chinese-owned dairy company.

Recent scandals involving dairy companies have placed a greater scrutiny not only over domestic producers, but also foreign producers amid rumors of "fake foreign milk" products sold in China.

"Legend Capital doesn't invest in domestic dairy producers since we are not confident about them," said Li Jiaqing, managing director of Legend Capital, during a press conference held by Nouriz Investment Holdings Ltd. on January 9.

Legend Capital is the investment arm of Legend Holdings, a company owned by the Chinese Academy of Sciences.

Li declined to specify the size of Legend Capital's investment in Nouriz, but confirmed it is the largest institutional investor in the dairy company. At the same press conference, the CEO of Nouriz told Caixin the company is registered both in China and New Zealand, with its China offices in charge of only marketing and sales.

Li said the business outlook for Nouriz continues to be bright, based on the continued confidence in foreign dairy products over domestic dairy products. "The core competitiveness of dairy products are based on raw materials. Nobody denies that natural resources of New Zealand are better than that of China," said Li.

Prior to the deadly milk scandal of 2008, and numerous other contamination incidents which occurred as recently as December 2011, Chinese producers of infant milk power dominated the market.

Since then, foreign brands now account for a majority share of the infant milk powder market.



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