Hangzhou-based Chinese beverage giant Wahaha Group won its third lawsuit against Danone, after a court in northwest China's Xinjiang rejected Danone's litigation.

Danone's subsidiary, Jinjia Investments Co. Ltd, which holds 51 percent of the shares of Danone-Wahaha joint ventures, sued Wahaha Group chairman Zong Qinghou of "damaging interests of the joint ventures" by setting up Xinjiang Shihezi Wahaha Food Co. Ltd, a potential competitor of Danone-Wahaha.

The Intermediate People's Court of No.8 Unit of Xinjiang Production and Construction Army turned down Jinjia's litigation, ruling the prosecutor should pay for a fee of 24,656 yuan (US$3,377) at the first trial.

"Zong didn't take advantage of his post as Chairman of Danone-Wahaha joint ventures to gain opportunities for his own company, and there isn't competition between Danone-Wahaha joint ventures and Xinjiang Shihezi Wahaha Food Co. Ltd. Besides, Zong has obtained agreement of Danone-Wahaha's board to open the new company," the court ruled.

French food group Danone has not responded to the latest loss yet.

This is the third time that Wahaha won lawsuits against Danone, after wining those in Hangzhou and Guilin, earlier this month.

Danone, which owns a 51-percent stake in 39 Danone-Wahaha joint ventures, accused Wahaha of setting up independent companies and selling products identical to those sold by the joint venture. Danone had demanded a 51-percent stake in the non-joint venture companies, which Wahaha rejected.

Since mid-year, the two companies have filed numerous complaints and lawsuits against each other in various Chinese and foreign jurisdictions.

(Xinhua News Agency December 22, 2007)