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After food safety scares, China retailer offers baby milk insurance

A Chinese retailer is offering insurance to customers who buy infant milk powder, highlighting the lengths to which companies are going to address concerns about food safety in China.

Suning Commerce Group Ltd, which owns the Redbaby chain of stores, told Reuters it had launched the policy this week, backed by China’s second largest insurer Ping An Insurance Group .

The policy stipulates that if a brand of milk powder is recalled, customers who bought cans from any Redbaby store or its e-commerce website would be paid up to 2,000 yuan ($325) per can, with payments capped at 100,000 yuan. 

Suning said it was giving the insurance away for free for the first 40,000 cans of baby formula sold. After that, customers can buy the insurance online.

Milk powder market 'a mess'

“In recent years, the milk powder market in China has been in a mess,” Suning said in an e-mail.

“We realised that parents pay a great deal of attention to their children’s health and safety, and in particular, the safety of their infants’ foods,” it added.

Insurer Ping An said Suning’s policy is the first of its kind in China.

In 2008, thousands of infants fell sick and six died after an industrial chemical was added to raise the apparent protein content of certain products.

This led to many Chinese families travelling to Hong Kong to purchase baby formula. 

Source: Reuters

 

ChinaUncategorisedFood Hygiene