Blog: Sanlu's new owners turn to organic to escape melamine's shadow
Katy Askew | 16 December 2013
The now owners of the Sanlu brand, Zhejiang Sanlu Industrial Co, are reportedly hoping that they can rebuild consumer trust and leverage - what remains of - Sanlu's brand equity by moving into organic grains.
Sanlu is a name synonymous with the 2008 melamine contamination scandal, which resulted in the deaths of six babies and sickened 300,000 more. Sanlu Group, which had been worth CNY14.9bn in 2006, was pushed into bankruptcy in the wake of the scare. It was then snapped up by Zhejiang Sanlu Industrial Co for CNY7.3m.
According to The Global Times, Sanlu's new owners now hope to build the brand into a force in the organic grain sector.
Linking the brand with the organic movement is a cleaver ploy. Organic sales in China growing apace. According to the China-Britain Business Council organic sales are expected to grow by more than 20% a year until 2020.
The key driver of this expansion is the widespread belief that organic products are safer. This selling point helps provide organic food manufacturers with a strong identity and clear message in a market where food safety concerns are almost a national obsession.
In obtaining organic certification in various markets - including China, Japan, Europe and the US - the message is clear. Sanlu grain products are safe.
Whether this will be enough to allow the brand to emerge from the long-shadow cast by the melamine contamination scare remains to be seen.
Today (23 December) is just-food's last day before closing for Christmas. We'll return, raring to go on Tuesday 3 January - but of course there's been plenty of top-notch content that has gone live in...
The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...
An update on Amazon's plans for the grocery sector. The usually reticent retailer has this week poured cold water on claims it has plans for 2,000 physical grocery stores....
- just-food 2017 Survey - your thoughts on growth
- 2017 - what will shape the UK food sector?
- Food market in 2017: need-to-know US trends
- Food market in 2017: big foodservice trends
- Could BRF's Turkey move pave way for OneFoods IPO?
- Ferrero insists Nutella not pulled from shelves
- UK's Bakkavor plays down IPO "speculation"
- Dairy giant Muller appoints new CFO, COO
- PepsiCo launches Walkers Mediterranean in UK
- Kellogg announces new "nutritious" line-up