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Abstract
After more than two years of accusations, litigation and arbitration French food group Danone and Chinese drinks maker Wahaha have ended a joint venture that broke down because of a dispute over trade mark ownership. Danone said last month that it will sell its 51% interest in all the Danone-Wahaha joint ventures to its Chinese partners, which will end all legal proceedings related to the dispute. Details of the settlement have not been disclosed. Danone and Wahaha set up five joint venture companies in 1996 to sell a range of drinks including bottled water and fruit juices. Danone took a 51% stake in the operations. The venture turned sour in April 2007 when Danone accused its business partner of selling products that competed with those made by the JV company and which were branded with the Wahaha mark. In 1996, when the Danone joint venture was formed, foreign companies had limited options when it came to investing in China. Now, in certain industries, it is possible to form a wholly foreign-owned entity and this is now the more popular route. But joint ventures can still be a popular way to invest.