Wahaha, China's leading beverage group, said its arbitration application concerning its dispute with joint venture partner Groupe Danone of France has been accepted by authorities in its home city of Hangzhou.

The Hangzhou Arbitration Commission accepted the application on June 14, Wahaha Group Co said in a statement.

The dispute with Danone concerns allegations that the Chinese company is independently selling brands controlled by Hangzhou Wahaha Food Co, their joint venture.

Wahaha Group claims that its 1996 deal to transfer Wahaha brands to Hangzhou Wahaha Food Co was not approved by China's trademark authorities.

"Therefore, the brand transfer failed and the brand transfer agreement expired. The Wahaha brand still belongs to Hangzhou Wahaha Group," it said.

Danone has sued Wahaha in US court over the parallel sales, claiming the joint venture controlling the Wahaha brand has been bypassed.

The French food and beverage group and Wahaha jointly offer a range of products including milk, fruit juice, water and carbonated soft drinks.