Tai Sugar Faces 243 Million Yen in Reputation Damage! Considering Suing Formosa for Compensation

Tai Sugar Company announced on the 5th that the crude oil purchased from Formosa in May this year was sourced from Zhonglian Company, which later caused a benzopyrene contamination issue. This led to the recall of Tai Sugar's products, causing significant damage to the company's reputation and operations. Tai Sugar stated that it will consult with lawyers to formally file a lawsuit against Formosa Company and seek legal compensation for the related damages.

Tai Sugar explained that it conducted raw material inspections in accordance with the contract and refused to accept crude oil that did not meet the contract specifications. However, the oil from Zhonglian Company later caused a benzopyrene contamination issue, affecting Tai Sugar's products, leading to recalls and reputation damage. This resulted in both tangible and intangible losses, prompting the company to take legal action to protect its rights.

Tai Sugar emphasized that it has long implemented self-quality management. This year alone, its salad oil products have undergone 32 inspections, all of which met the relevant standards, ensuring product quality and safety.

Regarding the external description of the incident as "Tai Sugar poison oil," Tai Sugar stated that this description is inconsistent with the facts, easily leading to social misconceptions and damaging the company's brand image. The company expressed regret and hoped that the public would verify the facts to avoid spreading misinformation.

Tai Sugar initially estimated that this incident has caused a loss of at least 243 million yen in salad oil products. The reputation damage is still being assessed. The company will work with lawyers and accountants to calculate the total damage and formally seek compensation from Formosa Company to protect the rights of the company and consumers.