The result was announced just before the lunar new year holiday, a source close to Mengniu told Campaign Asia-Pacific. Telunsu is the most high-end milk brand in the Mengniu Group.
Draftfcb is understood to have retained the accounts for two dairy products under Mengniu, while McCann Healthcare remains the agency-of-record for Mengniu's corporate branding.
The pitch was called as the result of an internal restructure that saw the establishment of five divisions. The source noted that Mengniu was seeking consolidation.
The source added that the company has implemended a series of quality control measures, including working with its global partner, Arla Dairy Group to maintain high standards.
The venture between Mengniu and Arla had primarily sold powdered milk in China. The two companies have now decided to sell a "full range of dairy products" in the market.
China dairy products have suffered due to safety concerns in recent years. Last June, the Shanghai Daily reported that China's General Administration of Quality Supervision, Inspection and Quarantine found high levels of mercury in baby formula products produced by Inner Mongolia Yili Industrial Group, one of China's biggest dairy companies.
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