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What China Can Learn From Tylenol

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Time was you could buy a bottle of ketchup and immediately start pouring the condiment to your heart's delight.

You did not have to unscrew the top, pull back the non-tampering plastic seal,throw out the seal,and then screw the top back on before you began using the ketchup

But you would have to be over thirty to remember those days. Any product that could possibly be tampered with after it has left the manufacturer now comes with a plastic protector that says to consumers --no one has touched this product since it left the manufacturer.

The plastic seals became part of American packaged goods as a result of the murders of seven people in 1982. The victims --all from the Chicago area --had taken Extra-Strength Tylenol medicine capsules which were laced with
potassium cyanide. The murderer was never found.

However,the reaction of Johnson &Johnson, the manufacturer of Tylenol has become an American classic of what you should do in a crisis.

They put the safety of people ahead of immediate shareholder benefit. Their stock tanked for a year but rebounded because consumers had confidence and trust in the company.

Which brings us to the latest product safety scandal coming out of China. This time it's tainted milk and milk byproducts -- tainted with melamine -the same poison that was found in pet food last year.

This time the melamine popped up in baby formula. Further testing found the poison is in a whole host of products ranging from candy to cookies.

Some estimates say the victims could reach 10 million.

China is pointing the finger of Sanlu Group Co ---43% of the company is owned by New Zealand's Fonterra Cooperative. The government of China owns the remaining 57%.

Fonterra is definitely not taking the same approach as Johnson& Johnson took in 1982.

In a phone conference to discuss the companies financial statements with the media , the chairman of Fonterra said the contamination scandal would not deter the company's commitment to " bringing healthy safe dairy products to China." He also said the contamination had taught the company a painful lesson --to be more suspicious.

"Fonterra missed testing for melamine ... so did everybody else," says Ferrier, who then corrected himself to say Sanlu missed testing.

He says Fonterra has worked aggressively with Sanlu and has confidence in its quality control, but it is difficult to predict "criminal contamination".

"We invested in a local company under the expectation that we could continue to bring in quality rules and procedures to make sure product was healthy for Chinese consumers".

"But ... jeez, someone coming in and poisoning milk? You can't get it all".

In future, Ferrier expects companies around the world to be checking for a wide range of contaminants.
tvnz.co.nz

Hmmm. Might I suggest the good folks in New Zealand study up on the Tylenol case. Not only did the CEO's sympathy for the deaths and illness sound less than heartfelt he also took a "don't blame us" attitude. Not exactly confident building.

 

David Wolf is a corporate communications and marketing strategist who has lived in Beijing since 1995 and says Fonterra's brand is in big trouble because the company allegedly knew about the contamination weeks before the kidney stone outbreak.

Fonterra, the large New Zealand food cooperative that partnered with Sanlu to manufacture the formula, will be remembered for a long time as a company that allegedly knew about the contamination some weeks prior to the kidney stone outbreak, that, justly or otherwise, reputedly did nothing to either stop the sale of the product or alert authorities. I cannot speak for the veracity of these claims, but they are circulating as if they are the truth.
[...]

The lesson of Fonterra is plain: foreign partners in joint ventures have

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Elana Centor 5 pts

 White Rabbit Candy is a very popular candy sold in Asian Markets -it's kind of like taffy. I think this would be a  much bigger story if we were not so focused on the economic meltdown--- this is a huge deal and while we as a country are thinking about reforming the way we behave, it would be great if product safety underwent the same self-examination.

elana
Blogher Contributing Editor,Business&CareersFunnyBusiness ( http://funnybusiness.typepad.com/funnybusiness )

Tacomamama 5 pts

The FDA is issuing a recall on coffee and tea products ( http://www.msnbc.msn.com/id/26903752/ ) sold in the US.  Fortunately, not big kid items.

The list includes:

Mr. Brown Mandheling Blend Instant Coffee (3-in-1)
Mr. Brown Arabica Instant Coffee (3-in-1)
Mr. Brown Blue Mountain Blend Instant Coffee (3-in-1)
Mr. Brown Caramel Macchiato Instant Coffee (3-in-1)
Mr. Brown French Vanilla Instant Coffee (3-in-1)
Mr. Brown Mandhling Blend instant Coffee (2-in-1)
Mr. Brown Milk Tea (3-in-1)
Also something called "White Rabbit Creamy Candy" which was tested in New Zealand and found to contain high levels of Melamine.

Tacoma Mama ( http://www.tacomamama.com )

Kitchen Table Issues ( http://kitchentablemama.blogspot.com/ )

Candelaria Silva 5 pts

When profit is the main goal of corporations - American, Chinese and any other, than it becomes okay to short-circuit quality and ethics for more money.  Just paying more for things doesn't guarantee that they will be ethically produced.   

There is a cavalier attitude for the well-being of other people that seems pervasive in the world today - from this milk scandal in China, to the big train accident in California where a train driver vound it acceptable to text message his food order while driving a train!

We have to accelerate the coming together  of people who have sense and solid values and aren't motivated by greed. 

Aaarrgghhh!

 blog.candelariasilva.com

Good and plenty!

Elana Centor 5 pts

 At some point American Corporations have to say despite the potential market size, it's simply not good business to do business in China until they get their act together,

 At some  point  American Corporations have to say no amount of profit is worth the death of one human being.

Do you think American Corporations will ever get to that point?

elana
Blogher Contributing Editor,Business&CareersFunnyBusiness ( http://funnybusiness.typepad.com/funnybusiness )

Tacomamama 5 pts

Without any product/food safety controls, this is what happens.   Kind of huge living proof that unrestrained free market capitalism does not equal democracy.  (Or sound policy)

Tacoma Mama ( http://www.tacomamama.com )

Kitchen Table Issues ( http://kitchentablemama.blogspot.com/ )

Crunchy Carpets 5 pts

You are dealing with a country that is ok with shoddy products and dubious ingredients.

Ethicaly the majority of China probably does not feel that they in the wrong when the build toys with lead in them and tainted formula....cheapest is best there...sadly for their own people and then for the people stupid enough to buy their products.

WE  all want cheap products.

The Chinese who live outside of China want their own products...they happily import stuff of poor and questionable condition....because they WANT made in China.

In Vancouver, we have had chinese owned dollar stores selling tainted and FAKE toothpaste.

Our Chinese community LOVES the knock off and we have malls as well as China Town filled with imported products...again....with quality control NOT being on top the important list.

In a world where we want cheap...THIS is what you get.

In a world where products are supposed to be cheap...THIS is what you get. 

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Tacomamama 5 pts

It's not going to be easy, it won't be as simple as a tamper proof cap, because the melamine is added during the manufacturing process to boost the apparent protein content of the milk.

In this case, the bad actor was not one isolated crazy but a decision maker somewhere in the company chain of command.

But I definitely take your point about what is an appropriate corporate response in a situation where lives are at stake.  Anything short of testing all milk and severing ties with tainted plants ought to be unacceptable.

We narrowly escaped worse food safety protections than China ( http://law.jrank.org/pages/13622/United-States-v-C... ), and the ongoing ideological debate about regulation makes it very much a current issue.

Tacoma Mama ( http://www.tacomamama.com )

Kitchen Table Issues ( http://kitchentablemama.blogspot.com/ )