Guangzhou China, May 13, 2011 - It is reported that 251 students in Yulin City, Shaanxi Province had suffered diarrhoea and vomiting after drinking the school milk. And such negative affair may have negative impact on the development of school milk programme in Shaanxi, which began to strengthen the development of local school milk programme, aiming to change their reputation by not only promoting local dairy industry development but also fostering a potential market in the future.
Mengniu, the largest liquid milk processors and school milk supplier in China, was involved in the negative news. And the company's subsequent poor public relations move is questioned by many media, which may hit Mengniu's brand image once again. For example, Guotai Jun'An International, a famous security company in China, cut Mengniu's investment rating to "neutral" from "accumulate", as Guotai Jun'An believed that Mengniu's explanation about the negative news can't eliminate consumers' and investors' doubts.
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