Feihe
Headquarters
ChinaType of ownership
PublicEstimated percentage of Feihe's global F&B sales from BMS
97%Estimated percentage of Feihe's global baby food sales from BMS
100%Countries covered in country studies
China© All rights reserved
Score 2024
Score
Score
Important:
The research findings regarding companies’ performance in this Index are based on information shared by companies or gathered by service providers, in addition to information that is available in the public domain.
The level of detail and comprehensiveness of information shared by companies and gathered through external service providers varied. In the case of limited or no engagement by companies, this Index may not represent the full extent of their efforts. Similarly, in the case of limited data collected by service providers, the findings of this Index may not provide a comprehensive representation of company practices.
ATNI’s research and Indexes do not assess compliance with local regulations or laws, but rather assess private sector performance against international standards and guidance.
BMS Country Studies
Score
The Country Studies component of the BMS and CF Marketing Indexes 2024 evaluates the extent to which a company’s marketing practices align with specific provisions of the WHO Code (not against local Code-related regulations). The main marketing channels assessed in the Country Studies for the BMS and CF Marketing Indexes 2024 are online points-of-sale, traditional and online media outlets, and product labels which were all assessed according to the NetCode protocol. Feihe sells BMS products only in China, one of the five countries selected for the assessment, which represents 100% of Feihe’s estimated global BMS sales. The Country Studies results for Feihe are summarized below for China across each marketing channel.
Country Studies overview
| Feihe | Country assessments | BMS market | |||
|---|---|---|---|---|---|
| Total incidences of non-compliance across online, traditional media, and product labels | Number of product labels assessed | Company brands found | BMS market share | Proportion of Feihe's global BMS sales | |
| CHINA | 104 | 31 | Astrobaby, Feihe, Xingfeifan, Zhenai Beihu, Zhenzhi | 19% | 100% |
| GERMANY | N/A | N/A | N/A | N/A | N/A |
| INDONESIA | N/A | N/A | N/A | N/A | N/A |
| US | N/A | N/A | N/A | N/A | N/A |
| VIET NAM | N/A | N/A | N/A | N/A | N/A |
(0 incidences of Code non-compliance corresponding to a country score of 100%)
(>0-10 incidences of Code non-compliance corresponding to a country score of 66%)
(>10-20 incidences of Code non-compliance corresponding to a country score of 33%)
(> 20 incidences of Code non-compliance corresponding to a country score of 0%)
• Feihe’s BMS sales are entirely in China, and the company possesses a relatively high share (approximately 19%) of the Chinese BMS market. A total of 104 incidences of non-compliance were found for Feihe, which included 73 advertisements and promotions related to BMS brands, and all 31 product labels assessed contained one or more incidences of non-compliance.
Observed incidences of non-compliance with the Code per country
Main in-country findings
The majority of incidences of non-compliant marketing practices (73 out of 104) for Feihe were identified through the social listening of online platforms., followed by inappropriate labels (31). No incidences of non-compliance were found for traditional media during the time of research. The instances of non-compliance found online were largely concerning growing-up milks, followed by follow-on formula, whereas non-compliant labels were found across all types of BMS.
Online findings
• Among the total incidences of non-compliance found online, 55 out of 73 were point-of-sale promotions found on online retailer platforms online, mainly in the form of discounts for growing up milks. Despite ATNI’s request for Feihe to verify any contractual relationship with the online retailer platforms monitored, confirmation could not be obtained from the company. Point-of-sale promotions found had an average of two instances of non-compliance per promotion. Apart from advertising BMS – a non-compliance with the Code in itself – other common incidences found with those advertisements included incentivizing the purchase of those products through offering coupons, gifts, and soliciting caregivers to join memberships for more benefits.
• The remaining 18 observations were found on the company’s local social media platform (Weibo), with an average of two instances of non-compliance per advert. Apart from advertising BMS – a non-compliance with the Code in itself – other instances found with those advertisements included health care sponsorship, promotion of bottle feeding, and offers/gifts/discounts, all of which are actions that do not comply with the code. Additionally, 10 out of 18 online advertisements had at least one type of claim, mostly health claims.
Traditional media findings
• No advertisements were found on traditional media channels (TV, radio or print) of Feihe’s BMS products in China in the six-month period the selected channels were monitored.
BMS product label
• A total of 31 of Feihe’s BMS products were assessed in China, with an average of two non-compliant incidences per product label, no product labels were found to be fully Code-compliant.
• Of the 31 products assessed for Feihe, the majority contained at least one type of claim nutritional (21), health (16), and/ or marketing (3). Other most frequently occurring incidences of non-compliances from products with clear images did not include a statement on the importance of exclusive breastfeeding in the first six months of life and continued breastfeeding for up to two years or beyond a clear legible statement that the product should be used only on the advice of a health worker, the words “Important Notice” or their equivalent followed by a statement on the superiority of breastfeeding.
• It is worth noting that ATNI did not have the resources to collect products from the different markets and take pictures of their labels. In this iteration, ATNI’s research was based on product label images from an external provider. For some products, images were not clear enough or did not show all parts of the package, thus ATNI asked the respective companies to provide images of the labels. As Feihe did not respond to ATNI during the verification phase, the company had not provided images of product labels as requested by ATNI. Therefore, incomplete assessments remained for a total of 17 products. Since at least one incidence of non-compliance was identified from the existing images, these labels were counted as a non-compliant observation.
Recommendations
• Given the substantial number of incidences of non-compliant marketing practices observed in China, Feihe is strongly encouraged to strengthen its responsible BMS marketing policies and ensure their full alignment with the recommendations of the Code and all subsequent relevant resolutions, including the guidance supported by WHA resolution 69.9. ATNI has developed a model company policy on the responsible marketing of BMS which can guide the company on how to incorporate Code provisions and align with the latest public health requirements in practice.
• Feihe is urged to restrict the advertising and promotion of all types of BMS products and brands on all forms of media platforms. The company should also refrain from the use of incentives that promote the purchase of its BMS products, such as discounts, deals and giveaways, and invitations to register for membership programs.
• Feihe is strongly encouraged to take responsibility for monitoring its marketing practices beyond local regulations, according to the principles and the aim of the Code and subsequent relevant resolutions, and to take steps to ensure this includes online media channels.
• Feihe is encouraged to engage with its industry associations, retailers and/or regulators to ensure that there are no promotions of BMS products in the retail environment, and see that products are appropriately marketed in line with the Code.
• Given that each of the labels assessed in China were found to be non-compliant with the Code requirements in at least one aspect, Feihe is encouraged to focus on improving labeling practices to ensure full compliance with the Code and all subsequent relevant resolutions, including the guidance supported by WHA resolution 69.9. This includes ensuring that product labels clearly include a statement promoting the importance of exclusive breastfeeding for the first six months and continued breastfeeding up to two years or beyond, and that labels do not include health or nutrition claims, except if specifically provided for in national legislation.
• Clear evidence was found of Feihe applying point-of-sale promotions for growing-up milks and promoting these on online platforms, which is contrary to the requirements of the Code, specifically the guidance supported by WHA resolution 69.9 that extended the scope of the Code to growing-up milks. Therefore, ATNI urges Feihe to ensure its commitments are extended to include growing-up milks in China.
• Feihe is strongly encouraged to cooperate fully with any future independent third-party assessments by providing clear and comprehensive product label images. Incomplete assessments can lead to inaccurate evaluations and hinder efforts to address incidences of non-compliance effectively.
• ATNI is calling on Feihe to review all incidence of non-compliance identified across all marketing channels in China, which were shared in detail with the company, and to take corrective action.
BMS Corporate Profile
Score
The Corporate Profile component of the BMS and CF Marketing Indexes 2024 evaluates the extent to which a company’s policies align with various provisions of the Code, the effectiveness of its related management systems as well as the company’s level of disclosure on commitments relating to BMS marketing. Feihe’s BMS marketing commitments were assessed across 11 topics that cover different aspects of the Code on which the company scored an average of 1,58%. This score is equivalent to the company’s initial overall Corporate Profile score before a geographic penalty (if applicable) is applied to each BMS product type. The final Corporate Profile score considers how the company’s BMS marketing commitments are applied for the different BMS product types sold by the company, and across different markets. As Feihe sells infant formula, follow-up formula, and growing-up milks, the company’s application of BMS commitments was evaluated for each product type, as shown in the next section on ‘Geographic application of BMS commitments by product type’. The scores and findings on each topic are described in further detail in the section below on ‘BMS Commitments by Topic’.
Geographic application by Feihe of BMS commitments by product type
The table below shows the percentage of product sales where commitments are upheld and the geographic penalty applied to each type of BMS. The penalty ranges from 0% up to 90% depending on whether a company fully upholds its BMS marketing commitments in all or none of the countries in which it operates, respectively, where national Code regulations are absent or less stringent than the company’s policies and standards.
|
Corporate Profile score before penalty |
Product type |
Percentage of Feihe’s global sales from markets where BMS commitments are upheld |
Geographic penalty applied |
Final Corporate Profile score |
|---|---|---|---|---|
| 1.6% |
Infant formula |
0% | 90% | 0.2% |
|
Follow-up formula |
0% | 90% | ||
|
Growing-up milk |
0% | 90% |
No information was found in the public domain nor shared by the company describing how BMS marketing commitments are upheld for each product type and in which markets. Therefore, the corresponding geographic penalty for each product type (infant formula, follow-up formula, and growing-up milk) is the maximum of 90% and the final Corporate Profile score is 0.16%.
Infant formula
The corresponding geographic penalty for this product type is the maximum of 90%.
Follow-up formula
The corresponding geographic penalty for this product type is the maximum of 90%.
Growing-up milk
The corresponding geographic penalty for this product type is the maximum of 90%.
ATNI calls on Feihe to develop and/or publish a BMS marketing policy that fully aligns with the wording of the Code, in addition to upholding the relevant national regulations in China. The policy should also cover all milks that is specifically marketed for feeding infants and young children from birth up to the age of three years, and it should be applied in China.
Topics Overview
BMS commitments by topic
Most topics include assessments on both policy commitments and management systems, except for the topic on ‘Implementation and Monitoring’, which mostly considers management systems, and the topic ‘Overarching Commitments’, which considers policy commitments only. A separate topic assesses the level of disclosure and transparency practiced by companies on the different aspects of the Code.