New Zealand dairy company a2 Milk has been fined by the Chinese government for breaching advertising regulations by using images of a child under 10 years old.
Chinese movie star Hu Ke and her son An Ji were invited to Australia two years ago to promote a2 Milk as reported in the AFR.
Hu Ke is married to another Chinese movie star and their son An Ji has built up his own following after appearing with his parents on popular reality television shows in China.
In a notice on its website, the Chinese authority said Zhi Chu Milk Trading Co, the trading company for a2 Milk, was fined 100,100 yuan (A$20,000). Last Friday, China’s advertising market regulator named a2 Milk along with 29 other companies for breaching regulations that prohibit using images of children under 10 as brand ambassadors.
Other companies named included a property developer, medical products manufacturer and food companies. A2 Milk confirmed in a statement to Inside FMCG this morning that they will pay the fine.
“The a2 Milk Company has been in discussion with the Administration for Industry and Commerce (AIC) over an advertising matter in China and has reached a mutual resolution to the satisfaction of both parties. The Company agreed to pay a fine of 100,000 Yuan ($20,000 AUD) as settlement of this matter,” said a2 Milk.
A2 Milk is of the best performers on the Australian Securities Exchange, having gained 165 per cent in the past year thanks to its popular infant formula.
Jane Hrdlicka, former Jetstar chief, recently took up the role of CEO of the dual-listed company. A2 Milk Company was founded in New Zealand in 2000 by scientist Dr Corran McLachlan, with the support of his business partner Howard Patterson. The company produces milk from cows that only produce the a2 type of beta-casein, which they say is easier for those who are lactose-intolerant to digest.
