The decision follows a difficult year for the dairy industry, which has been rocked by the tainted milk scandal. Mengniu was the number two dairy brand in China seven years ago with 25 per cent market share. Now it has a share of around 49 per cent, ahead of Yili on around 25 per cent.
Yili has recently taken a more aggressive marketing stance, emphasising the safety of its milk products and its status as an official sponsor of the 2010 Shanghai World Expo.