Sanlu's Melamine-Tainted Milk Crisis in China Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

On 12^th September 2008, the biggest maker of milk powder in China, Sanlu Group, rocked the nation when it declared that its infant formula had been contaminated with the hazardous chemical melamine. China's national review agency expanded its investigation to other dairy manufacturing companies across the nation. Shockingly, products of 21 other dairy farms, including some well-known Chinese brands, also tested positive for melamine. Due to expenditure of melamine-laced milk commodities, more than 56,000 infants and young kids had become ill and four babies had died from kidney failure by the end of September. The melamine panic also resulted in many states banning and recalling goods using milk products from China. When Sanlu became the key culprit in the milk catastrophe after its infant formula was revealed to include as much as four times melamine than other brands that were tainted, the firm apologized to the people.

Sanlu additionally explained that its unscrupulous raw milk dealers had added melamine to milk. Nonetheless, it neglected to clarify its delay in alerting the people when it first received customer complaints in late 2007. Fonterra wrote off all its investment in Sanlu, and Sanlu finally declared bankruptcy on 24 December 2008. The Sanlu episode has forced the business and the government to make a collective effort to restore consumer confidence in Chinese dairy products and has spotlighted the inadequacy of China's whole dairy supply chain.

Sanlu's Melamine-Tainted Milk Crisis in China case study solution

PUBLICATION DATE: June 11, 2009 PRODUCT #: HKU837-PDF-ENG

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