Sanlu, one of China’s biggest and most famous milk-production company, has went broke in 2009 because of a terrible milk powder safety problem which caused more than 70 one-year-old babies suffered from kidney stone. The crime culprits who caused this severely food-safety problem are farmers who sold their milk to Sanlu.To enhance the content of protein in milk, they put Melamine(C3H6N6),a uneatable chemical into milk to reach the protein line in 2008.
Because of this scandal, Sanlu,a brand valued 14.907billion, broke off its sharp expansion and being insolvency by paying fines and the sick babies’ hospital treatment expense.8 months later, this leader deer(Sanlu means three deer in Chinese) finally collapsed.
However, this ‘poisonous milk powder’ event is only a fuse lighter for Sanlu’s broken down. The mian problem is about this company’s ethic and management. At that time, stockholders and executives were only focus on the company’s expand and make profit. For the milk-production firms, control the milk source means everything. So that they took a lower standard of the milk’s quality they bought in and used second-class milk to produce baby milk powder.
Most important thing is that when the ‘poisonous milk power’ caused some babies illess, Sanlu chosen silence rather than take some action to redeem the company’s honor and told consumers the truth.In the end, Sanlu took itself into the depth of despair.