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June 8 - The founder1 and chairman of Chinese beverage2 giant Wahaha, Zong Qinghou, has resigned from his post as chairman of its 39 joint3 ventures with its French partner Groupe Danone, a statement from Wahaha said on Thursday.
"Zong sent a letter to Groupe Danone's headquarters in France, in which he announced his resignation from his post as chairman of the joint ventures," the statement said. Zong also requested in the letter that all staff members of the joint ventures stay at their posts, according to the statement. A subsequent statement from Groupe Danone said "the board has accepted his resignation, and will appoint Emmanuel Faber, currently serving as Vice4 Chairman, as the interim5 Chairman of Wahaha joint venture companies". "Mr Faber hopes that the Wahaha joint ventures will operate as usual," it said. "Danone's objective has been, and will always be, to ensure thedevelopment of the JV companies, their brands and employees. We are looking forward to the continuous development of the Wahaha joint ventures," the media statement by Danone quoted Faber as saying. "As part of its global social responsibility policy, Groupe Danone makes a commitment to the employees of the Wahaha joint ventures to guarantee their job security, their benefits, the improvement of working and living conditions, personal respect anddevelopment," Faber said in the statement. Zong said he would prepare to answer the arbitration6 and lawsuit7 filed by Danone against Wahaha in May 9 and June 4. The dispute between Danone and Wahaha began last year when Danone accused Hangzhou Wahaha of illegally selling products identical to those sold by the companies' joint ventures and using supplier and distributor resources of the joint ventures to carry out its own business operations. Danone demanded a buy-out of a 51-percent stake of the non-joint ventures of Wahaha claiming that Wahaha's use of the brand violated the 1996 agreement between the two parties. But Wahaha said the agreement, with an article restricting Wahaha's independent expansion and signed by both sides, was never approved by China's trademark8 office and so was invalid9 and unenforceable, and the article actually only allowed the joint venture to use the brand name of Wahaha rather than own it. Wahaha and Danone have built 39 joint ventures since 1996, but Danone has managed to hold a 51 percent stake in the joint ventures. Unsatisfied with the cooperation, Wahaha has also established some new companies of its own which also sell products with the "Wahaha" brand. After rounds of negotiations10, Danone finally filed a lawsuit on May 9 in Stockholm, Sweden to solve the dispute with Wahaha. On Monday, Danone filed a lawsuit in the Los Angeles-based Superior Court against the Ever Maple11 Trading Ltd. and Hangzhou Hongsheng Beverage Co Ltd, and two individuals related to these companies. Ever Maple Trading Ltd. is the controlling shareholder12 of Hangzhou Hongsheng Beverage, which is the parent company of Hangzhou Wahaha Food and Beverage Sales Co., Danone's joint venture partner in China.
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