Sunday, September 21, 2008

Sanlu group baby formula recall



Now here's an interesting case of PR gone wrong. The largest producer of powdered milk in China, Sanlu Group, has been forced to recall their baby formula after melamine was found in the product. Melamine is a chemical that is high in nitrogen and is used in glue to promote thickening; it will boost the protein rating of a product because most standard tests measure nitrogen levels as the indication of protein levels. Thus far, the tainted milk has claimed the lives of four children. It is estimated that more than 6250 children have kidney stones due to the product.

Claims are arising that the company was aware of the problem with their baby formula as early as March, but the product recall on started Thursday, September 11th. In fact, up until last Friday, September 19th, the company's commercials for their baby formula were still accessible on the site. As of September 20th, the company's website has been shut down and visitors are greeted by an apologetic letter from the company's new chairman. The previous chairwoman was fired and then taken into custody. The mayor and deputy mayor of the corporate town were also fired, so were a handful of quality inspectors and the head of the government quality inspection office.

The way that Sanlu has handled this crisis can only be called a PR nightmare. I give them credit for firing the quality inspectors, government officials, and chairwoman, but the firing of their mayor seems questionable. Who are the people supposed to look to as a spokesperson during this crisis? The Prime Minister of New Zealand has stepped up to the plate, because Sanlu is 43% owned by a New Zealand dairy cooperative, however I have to question if she is the appropriate spokesperson. Sanlu is now trying to use their new chairman as their spokesperson, but I again question this. Their spokesperson should be someone trusted by the community, possibly even someone well known. Obviously, the chairman has been thrown in the deep end. I hope he can swim!

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