Taoli Bread Battles Consumer Backlash Over Controversial Ads and Safety Scandals as Stock Plummets】

The brand’s troubles began to surface publicly in early 2023, when a series of missteps sparked outrage on the nation’s biggest social platforms. In September of that year, Taoli released an advertisement that leaned on a provocative slogan – loosely translated as “life’s beatings” (生活毒打论) – in an effort to position its products as a comfort against everyday hardships. The message, which many viewers found tone‑deaf, was pulled from the airwaves within days after a flurry of complaints flooded online forums. The controversy resurfaced in 2025 when another campaign, centred on a “budget inadequacy” theme, again drew a mixed reaction. While some praised the brand’s willingness to address financial stress, others accused it of trivialising the very real pressures faced by Chinese families.

Beyond the headlines on advertising, the bakery has been beset by a string of food‑safety concerns that have fanned public anxiety. In February 2023 a video of a consumer discovering a two‑centimetre rusty knife blade hidden inside a loaf went viral under the moniker “bread with a knife” (面包藏刀). The incident, which quickly spread on Weibo and other platforms, prompted a wave of similar complaints on the Black Cat consumer‑rights site, where users reported hair, insects and other foreign objects in everything from sliced white bread to fruit‑filled pastries. While the company has repeatedly asserted that its quality‑control protocols meet national standards, the recurring nature of the reports has eroded confidence among a growing segment of shoppers.

Despite the headwinds, not all of Taoli’s offerings have suffered the same fate in the eyes of consumers. A handful of products have become minor cultural touchstones, especially among busy urbanites who value convenience as much as flavour. The “Egg Floss Bread” (鸡蛋香松面包) – a soft, slightly sweet loaf streaked with a light egg‑scented coating – has consistently earned glowing comments on Weibo. Users describe it as “delicious and fulfilling for breakfast,” noting the harmonious blend of egg aromatics and a subtle salad‑dressing‑like tang that makes it a quick, satisfying start to the day. Another favourite, the “preserved‑vegetable and sausage ciabatta” (梅干菜香肠恰巴塔), has likewise amassed a loyal following for its hearty, aromatic profile.

The dichotomy between product praise and brand‑wide criticism has played out starkly in the market. As of May 2025, Taoli’s share price had fallen 17.4 per cent, making it one of the worst‑performing stocks in China’s food sector. Analysts point to a confluence of factors: rising raw‑material costs, heavy spending on marketing – some of it poorly received – and a perceived lack of innovation in the company’s product pipeline. The financial slump is further compounded by a recent judicial freeze on shares held by several of the family’s major shareholders, a move that has raised eyebrows about corporate governance and transparency.

Taoli remains a quintessential family‑controlled enterprise. Founder Wu Zhigang (吴志刚), whose net wealth was estimated at roughly 9 billion RMB in 2024, retired at the age of 84 in 2019, handing the reins to his three sons. Wu Xueliang (吴学亮), the youngest, took over as chairman of the board, while his brother Wu Xuequn (吴学群) now serves as general manager and is the largest individual shareholder after receiving a significant stock transfer from their father. Their mother, Sheng Yali (盛雅莉), and the third brother, Wu Xuedong (吴学东), are also active shareholders. Collectively, the family controls the company through a coordinated voting bloc, a structure that has drawn attention after the recent share‑freeze episode.

Outside the family circle, Taoli’s ownership landscape includes several strategic investors. State‑linked firm 65 Equity Partners holds a 12.2 per cent stake with six per cent of voting rights, while tech giant Tencent owns 9.6 per cent of the equity and 4.7 per cent of the votes. New‑economy venture capital group NEA controls 6.5 per cent of the shares with a 3.2 per cent vote. These investors, many of whom are accustomed to rapid growth cycles in the technology sector, now face the challenge of navigating a traditional FMCG business that is grappling with brand perception and operational headwinds.

The repercussions of Taoli’s recent ordeals reverberate beyond the company’s balance sheet. For China’s broader food‑manufacturing industry, the saga underscores how fragile brand equity can be in the digital age. A single misjudged advertisement, or a viral video of an alleged foreign object, can spark nationwide scrutiny that translates swiftly into market penalties. The incidents have prompted other manufacturers to tighten quality‑control measures, invest in more transparent supply‑chain tracking, and adopt more cautious advertising approaches, especially when addressing socially sensitive themes.

Consumer activism, amplified by platforms such as Weibo and the Black Cat complaint site, has become a decisive force. Shoppers are no longer passive recipients of brand messaging; they actively police corporate behaviour, catalogue grievances, and rally collective sentiment with the click of a button. The “Egg Floss Bread” phenomenon illustrates how positive product experiences can coexist with broader brand criticism, suggesting that a company’s fortunes may hinge on its ability to segment and manage distinct consumer narratives.

Regulators, keen to preserve social stability and protect consumer rights, are likely to keep a watchful eye on how Taoli and its peers respond to these challenges. While there has been no official sanction announced in the wake of the advertising controversies or the foreign‑object claims, the Chinese government traditionally steps in when public confidence is shaken. Heightened oversight could manifest in tighter food‑safety inspections, stricter advertising standards, or even penalties for companies that fail to address verified complaints.

Amid the turbulence, Taoli’s leadership has taken steps to regain public trust. In early 2025 the company issued a public apology for a mooncake advertisement that had drawn criticism, though details of the misstep remain sparse. The apology was accompanied by a pledge to strengthen internal review processes for marketing materials. Whether these measures will be sufficient to mend the brand’s image remains to be seen, but they signal an acknowledgement that the old playbook of “sell at all costs” no longer works in a marketplace where transparency and social responsibility are expected, not optional.

The story of Taoli Bread is a microcosm of the shifting dynamics shaping Chinese consumer markets. It reveals how a legacy brand, once buoyed primarily by distribution reach and product familiarity, must now reckon with an empowered, digitally literate public that demands quality, accountability, and genuine empathy from the companies they patronise. As the company works to steady its stock, resolve its governance woes, and reassure a sceptical audience, its experience will likely serve as a cautionary tale for other traditional manufacturers eyeing the fast‑moving, high‑stakes arena of China’s modern consumer economy.