The Sanlu poisoned milk saga was extremely sad, no-one likes to hear of deaths caused by products.
Beyond the tragic deaths, the saga was expected to hurt Fonterra heavily – they had a large stake in Sanlu, and it was expected to sully their reputation in China. However, this wasn’t the case.
After the crisis became public in September, Chinese dairy companies started buying milk from overseas rather than sourcing it locally, he said.
That was the largest of three drivers of the increase in Asian revenues.
It appears that the Chinese public still trusted Fonterra – but did not trust domestically made milk at all. As a result, Fonterra ended up with a huge boost to sales. A surprising result.