China’s Yili and Mengniu spar over sponsorship status for 2022 Winter Olympics in Beijing as stakes run high for dairy giants
- The real purpose of China Mengniu Dairy’s sponsorship is to make Chinese consumers believe it is an ‘Olympic sponsor of dairy products’, Yili says
A row is brewing between China’s two largest dairy producers over sponsorship rights for the 2022 Winter Olympics in Beijing, underscoring what’s at stake for corporate branding in the biggest winter sporting event on earth.
Inner Mongolia Yili Industrial Group, China’s largest milk company and exclusive dairy products sponsor of the 2022 Winter Games, is threatening to pull its sponsorship after accusing its smaller rival China Mengniu Dairy of buying its way into the marketing campaign and “misleading the public.”
Mengniu has paid a fee to Coca-Cola Company to become the joint global beverages sponsor of the International Olympic Committee (IOC), thereby “infringing” upon Yili’s interests as sponsor, according to an open letter published on Yili’s WeChat account.
“It is known to all that Mengniu is a dairy company, and beverage products account for just a small portion of its total business,” Yili said in the letter. “Its real purpose is to mislead Chinese consumers, and make them believe that Mengniu is an Olympic sponsor of dairy products. We have to consider whether to terminate cooperation with the Beijing Winter Olympics Organising Committee, and sever ties with the IOC after December 31, 2024.”
The letter, which was later deleted from Yili’s WeChat account, was verified by the dairy producer’s press officer, who declined to comment further. Mengniu said it would release an official response to Yili’s accusation.
