Nongfu Spring was fined, and the two drinking water giants competed for "acidic water" again.
Nongfu spring took Yibao as a comparison was fined 100,000 yuan, Yibao said to hold the other party accountable
In the peak season of drinking water sales, the "struggle" between the two major domestic drinking water giants, Nongfu Spring and China Resources Yibao, continues, and the degree of firefighting continues to escalate.
"China Resources Yibao pure water is indeed processed from tap water, and the water used is all local tap water. It is a fact that the water is acidic." On the 14th, Nongfu Spring issued a statement of "losing the lawsuit, not losing the facts" in a lawsuit with China Resources Yibao and the Guangzhou Municipal Bureau of Industry and Commerce. Previously, Yibao complained to the Guangzhou Municipal Bureau of Industry and Commerce that Nongfu Spring used Yibao water to test and compare the pH value of bottled water in marketing activities, which was unfair competition. The Guangzhou Municipal Bureau of Industry and Commerce found that the behavior was "an act of unfair competition that fabricates facts, belittles competitors, damages competitors’ business reputation and commodity reputation", and imposed an administrative penalty of 100,000 yuan. Therefore, Nongfu Spring sued the Guangzhou Municipal Bureau of Industry and Commerce, and the first instance was rejected.
Responding to Nongfu Spring’s statement on August 14, China Resources Ipoh said it respected the government’s administrative ruling and accused "Nongfu Spring of taking vicious competitive measures over the years, causing serious damage to the reputation of the industry and the enterprise". At the same time, Ipoh said it would reserve the right to further pursue its responsibility.
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Nongfu Spring was fined for improper competition
The "struggle" between Nongfu Spring and Yibao has a long history. This time, Nongfu Spring’s legal battle against Yibao involved the Guangzhou Municipal Bureau of Industry and Commerce and attracted a lot of attention.
The incident was caused by Nongfu Spring’s marketing activities in Guangzhou, which compared competitor Yibao as a target. Yibao believed that this move had a negative impact on it, and then complained to the Guangzhou Municipal Bureau of Industry and Commerce. From March 15 to 28 last year, Nongfu Spring launched a promotion in Guangzhou Carrefour Supermarket, giving away Yibao drinking water and the book "Water and Health" (which promotes the knowledge that drinking weakly alkaline water is good for health) to consumers who buy products. In the book "Water and Health", there is a single page of Nongfu Spring nationwide. The single page is accompanied by a single two-piece pH test paper. The single page quotes some questions from the book "Water and Health" and "Is the water you drink healthy?" and other content.
According to the Guangzhou Municipal Bureau of Industry and Commerce, in three stores, Carrefour Jinsha Store, Wanguo Store, and Kangwang Store, the temporary promoters of Nongfu Spring used the labeled Nongfu Spring drinking water and Yibao drinking water to conduct pH tests to show customers that the pH value of Nongfu Spring drinking water is weakly alkaline, and Yibao water is weakly acidic.
In this regard, Yibao complained to the Guangzhou Municipal Bureau of Industry and Commerce. After verification, the Guangzhou Municipal Bureau of Industry and Commerce believed that the reference to the relevant articles of the "Water and Health" book in the leaflet page of Nongfu Spring constituted a fabricated fact. The water pH test conducted by the temporary promoters of Nongfu Spring in the store was "through comparison, belittling competitors". Therefore, the "Administrative Penalty Decision" was issued, and Nongfu Spring was fined 100,000 yuan.
Nongfu Spring was not satisfied and submitted a request for administrative reconsideration to the Guangdong Provincial Administration for Industry and Commerce on November 17, 2013. On January 23, 2014, the Guangdong Provincial Administration for Industry and Commerce delivered the "Administrative Reconsideration Decision" to Nongfu Spring, maintaining the specific administrative act made by the Guangzhou Municipal Administration for Industry and Commerce.
Nongfu Spring then filed a lawsuit with the Guangzhou Tianhe Court, asking the court to revoke the administrative penalty decision of the Guangzhou Municipal Bureau of Industry and Commerce. On August 14, Nongfu Spring confirmed that the case was found unsuccessful in the first instance appeal of the Guangzhou Tianhe District People’s Court. The case was recently held in the Guangzhou Intermediate Court for 2nd-round Moderation.
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Is it the truth or unfair competition?
"It is a fact that Yibao water is acidic, and the farmer has never fabricated it." In response to the loss of the first-instance lawsuit, on August 14, Nongfu Spring issued a statement insisting that the judgment could not change the facts.
According to the company, the comparative water testing activities used in the company’s marketing activities are based on scientific experimental methods and present objective experimental results, which are fully supported by science.
"China Resources Yibao purified water is indeed processed from tap water. We investigated its factories and foundries, and the water sources used are all local tap water." Nongfu Spring pointed out that whether it is tested by pH testing equipment or precision pH test paper, the test results of China Resources Yibao purified water show that it is acidic; at the same time, when tested by TDS tester, the TDS value of China Resources Yibao purified water is close to 0, indicating that the water does not contain any mineral elements. "Many institutions and scholars, including the World Health Organization, have pointed out that drinking water without mineral elements is not good for health. In practice, pure water without mineral elements is usually acidic."
Nongfu Spring believes that the comparison test it uses is to let consumers know the source, pH value, mineral element content and other information of the water they drink. "Water pH test is a beneficial activity to return consumers’ right to know."
In response to the series of actions of Nongfu Spring, on the evening of the 14th, China Resources Yibao issued a statement on its official Weibo, saying that Nongfu Spring has caused serious damage to the reputation of the industry and enterprises. "Nongfu Spring has always adopted vicious competition methods for many years to mislead consumers about drinking water. We will reserve the right to further investigate its responsibility."
China Resources Yibao said it fully respected the government’s administrative ruling that "Nongfu Spring fabricated facts to disparage competitors’ business reputation and commodity reputation".
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The acidity and alkalinity of drinking water is meaningless
Experts suggest that consumers view the concept of business hype rationally
Is there any difference between acid and alkali in drinking water? Acid water and alkaline water, which is healthier and more nutritious for the human body?
"There is no saying that acidic or alkaline water is healthier and more nutritious." On the 14th, Zhong Kai, an associate researcher at the National Food Safety threat and risk assessment Center, pointed out in an interview with reporters that the current national drinking water standards require drinking water pH not less than 6.5 and not higher than 8.5. In this range, water may be weakly acidic or weakly alkaline.
Zhong Kai said that there is no claim that acidic or alkaline water is healthier and more nutritious. The essence of mineral water is not much different from tap water, but the source is different.
The reporter found that Nongfu Spring has been promoting the concept of drinking water acidity and alkalinity for many years, and has carried out pH testing and comparison activities in marketing, which has attracted controversy from all parties.
"Yibao is the biggest competitor of Nongfu Spring, and there have been constant conflicts between the two companies in recent years." Zhu Danpeng, a long-time veteran of the beverage market, pointed out that the competition between Nongfu Spring and Yibao has intensified in recent years, and the "infighting" has also been continuous. From the earlier "war of words" to the judicial war, from the "water dispute" to the "battle for market share" and the "pH test", the level of "struggle" has been rising continuously, smearing each other. "Yibao relies on its brand advantage in southern China, and the pace of its layout in the country is very rapid. Nongfu Spring feels a sense of crisis."
Industry insiders say that the existence of quarrelsome voices like Nongfu Spring is unhealthy for the entire industry. At the same time, consumers are advised to take the concept hype of merchants seriously and choose products rationally.
● Nanfang Daily reporter, Ou Zhikui, intern, Xiong Lafang