Small batches of Sanlu brand liquid milk are back on sale in China but the firm will struggle to recover its national presence, industry watchers have predicted.
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Sanlu products were removed from shelves in September after the firm’s milk powder was linked to the deaths of three babies. Thousands of others fell ill from drinking the melamine-contaminated milk powder.
Last week, Chinese state media Xinhua reported that fresh milk produced by one of Sanlu’s affiliated plants, Xingtai Sanlu, had returned to stores in Hebei, Henan and Shandong provinces. Daily sales were around 50 tonnes, a fifth of the former amount, the firm told Xinhua.
Chen Lian Fang, an analyst at Beijing agribusiness consultancy BOABC, told just-food that some older consumers from Hebei province, where Sanlu is based, appeared to remain loyal to the brand.
“Sanlu products are still cheaper than other products,” he said. “But these small sales will do little to rebuild the brand’s image. Sanlu’s brand value is currently below zero.”
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By GlobalDataChen said Sanlu could restore its brand in Hebei province within two to three years but added that “it will no longer be a national brand”.
