China: company that sold contaminated milk returns to the market with organic products
Five years after the scandal of milk contaminated with melamine, the Chinese company Sanlu is back on the market a new segment â€" the organic products.In 2008, recalled, Sanlu produced and marketed milk powder contaminated with melamine, which caused the deaths of six babies and poisoned more than 300 thousand children. The case, publicized internationally, led to the bankruptcy of the company and to life imprisonment of the former Director-General of the company.Now, under a new management, the company is dedicated to the production and trade in organic products, like noodles or spaghetti corn-based. After the bankruptcy of the Sanlu Group, which was held in part by New Zealander Fronterra, the image and the registration of the mark were acquired by Xinhua Jiang, a private investor who now leads the Zhejiang Sanlu, the new owner of the company brand, writes the Quartz.In an attempt to return to the market, the company revealed in November, a food fair, a small range of products based on buckwheat, corn and other cereals. Through the new line of products, the Zhejiang Sanlu is trying to get part of the revenue and popularity that Sanlu was one of the largest milk powder brands in the Chinese market."Our commercial objective is to revive the brand ' Sanlu ' and build a new world mark of organic cereal-based food," says marketing director of Zhejiang Sanlu, Yang Xiangdong. "We don't want to see a reputable brand with more than 50 years disappear in history", he adds.The reintroduction of the brand through new products had so far little impact among Chinese consumers, who have not yet forgotten the scandal of 2008. "In the heart of the public, the Sanlu is practically a synonym of counterfeiting, shoddy and dangerous products," said Li Zhiqi, a marketing consultant in Beijing. "The value of this tag is almost zero," he stresses.
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