China's dairy giants are locked in a bitter battle after a leading industry player, Mengniu, was accused of fabricating product safety scandals through public relations company to tarnish the images of its rivals, Yili Group and Synutra International. Rumors were circulating that Mengniu made up a story that spread online in July, which claimed Yili's infant formula contained fish oil that could lead to premature sexual development. Mengniu also allegedly plotted a public relations campaign to create a milk powder scandal, in which Synutra products were reported to have caused baby girls to develop breasts. ? Mengniu says sorry, and accuses ? Smear campaign jeopardizes dairy industry ? Mengniu denies trying to smear competitor ? Smear scandal sours China's dairy image |