The Sanlu Group used to be one of leading companies of the dairy industry in China and it was, in 2006 , ranked as the top 100 Chinese companies in Forbes list.

However, surprisingly, it was found selling contaminated milk powder with melamine in 2008, which sickened 294,000 infants and killed 6 of them. It ended up going bankrupt because of the irreversible damage of reputation. Sanlu, as a big dairy products company, was supposed to have an established inspection system. Nevertheless, it excessively pursued profits and expanded their brand, neglecting the inspection system. The company even accepted milk sources with lower quality to ensure the quantity of products but not safety of them.

The bankrupt of the Sanlu Group was actually an unescapable result because they separated their own profits from those of consumers and obviously paid more attention to their own interests. They actually got a chance to save their brand in 2007 when they got reports from some remote areas saying that some kids got kidney stones after drinking their powdered milk. However instead of taking some positive reactions such as inspecting and countermanding those products, they used some lame excuses such as hot weather and excessive water consumption to dupe consumers, leading the brand to a complete failure.