– MaLiuJi’s sour and spicy noodles encounter another mold contamination incident, raising serious quality control concerns just months after the previous outbreak.
– Online sales have plummeted approximately 70% year-on-year, heavily impacted by the ban on founders Zhang Lan (张兰) and Wang Xiaofei’s (汪小菲) social media accounts.
– The brand is aggressively expanding its offline presence, targeting 300 new stores by 2025, with the first overseas outlet set to open in the US.
– Heavy reliance on third-party manufacturing models continues to pose risks to product consistency and brand reputation.
– Investors should closely monitor MaLiuJi’s response to these operational challenges for indicators of long-term viability.
MaLiuJi (麻六记), the popular Chinese food brand, is once again grappling with a severe product quality crisis as consumers report mold contamination in its signature sour and spicy noodles. This latest incident, occurring less than two months after a similar风波, underscores the profound operational challenges the company faces. Despite its rapid rise fueled by viral marketing and celebrity endorsements, MaLiuJi now confronts a stark reality of declining sales and growing consumer skepticism. The brand’s heavy dependence on代工 (third-party manufacturing) and直播带货 (live-streaming sales) has left it vulnerable to supply chain disruptions and reputational damage. As MaLiuJi pushes forward with an ambitious plan to open 300 offline stores this year, investors and market watchers are questioning whether the company can overcome these hurdles and sustain its growth trajectory.
Recurrent Product Quality Issues and Consumer Backlash
MaLiuJi’s operational challenges are most evident in its recurring product quality problems. The brand’s sour and spicy noodles have been at the center of multiple mold contamination reports, eroding consumer trust and highlighting weaknesses in its supply chain management.
Details of the Latest Mold Contamination Incidents
Recent social media posts from consumers show visible mold, black spots, and unpleasant odors in MaLiuJi’s sour and spicy noodle products. Affected production dates include June 6, June 23, July 6, and August 6, 2025, suggesting a wider issue than previously acknowledged. In July 2025, MaLiuJi issued an apology after mold was found in batches produced on June 16 and June 18, attributing the problem to insufficient sterilization during manufacturing. However, the emergence of new cases in August indicates that the company’s corrective measures may have been inadequate. One consumer reported receiving a severely moldy product dated August 6, despite MaLiuJi’s earlier assurances of improved quality control. The company has offered refunds and compensation, but the slow resolution process has frustrated buyers, with some waiting weeks for settlements until public pressure prompted faster action.
Impact on Brand Image and Consumer Trust
The repeated quality issues have significantly damaged MaLiuJi’s reputation. Consumers who once flocked to the brand for its association with founders Zhang Lan (张兰) and Wang Xiaofei (汪小菲) are now expressing doubt on platforms like Douyin (抖音). The company’s客服 (customer service) initially resisted specific compensation talks, only agreeing to退一赔十 (refund ten times the purchase price) after the topic trended online. This reactive approach highlights MaLiuJi’s struggle to manage public relations crises proactively. The brand’s reliance on代工模式 (OEM model) with manufacturers like Sichuan Baijia Akuan Food Industry Co., Ltd. (四川白家阿宽食品产业股份有限公司) – which saw MaLiuJi’s代工金额 (OEM costs) surge from over 50 million yuan in 2022 to 201 million yuan in 2024 – exacerbates these challenges. Without direct control over production, MaLiuJi faces an uphill battle in ensuring consistent quality across its product lines, including beef chili sauce and hot pot base.
Sharp Decline in Online Sales Performance
MaLiuJi’s operational challenges are compounded by a dramatic drop in online revenue. The brand, which once thrived on digital platforms, is now seeing a steep decline in sales and engagement metrics.
Data Analysis of the Sales Plunge
Third-party data reveals that MaLiuJi’s sales on Douyin (抖音) have fallen sharply. Over the past 30 days, sales ranged between 7.5 million and 10 million yuan, compared to 25 million to 50 million yuan per month in August and September 2024 – a year-on-year decrease of approximately 70%. This downturn is partly linked to the February 2025 indefinite suspension of Zhang Lan and Wang Xiaofei’s Douyin accounts for infringement-related炒作 (hype). Prior to the ban, their live-streaming activities contributed nearly 40% of MaLiuJi’s annual Douyin sales. The brand’s efforts to compensate through store-based live streams have yielded limited results; for instance, MaLiuJi’s official flagship account, with over 2.6 million followers, now attracts only dozens of viewers per session, down from thousands at its peak.
Erosion of Online Engagement and Marketing Efficacy
The decline extends beyond sales figures. In 2024, MaLiuJi participated in 102,000 live streams collaborating with 8,855 influencers. By mid-2025, these numbers dropped to 33,000 live streams and 2,626 influencers – less than half of previous levels. This reduction in marketing activity reflects diminishing brand heat and investor confidence. The brand’s轻资产 (light-asset) strategy, while cost-effective, has proven insufficient to sustain growth without the founders’ personal influence. As MaLiuJi’s operational challenges mount, the company must rethink its digital strategy to regain momentum.
Offline Expansion Strategy Amidst Turmoil
Despite its online struggles, MaLiuJi is betting big on offline growth. The brand plans to expand its MaLiuJi Sour and Spicy Noodles store chain aggressively, aiming to reach 300 locations by the end of 2025.
Plans for 300 New Stores and加盟模式
MaLiuJi Sour and Spicy Noodles, a separate offline brand, offers items like sour and spicy noodles,豌杂面 (pea noodle), and small dishes, with an average per-customer spend of around 30 yuan. The expansion primarily relies on加盟 (franchising). According to official reports, 150 stores have been signed nationwide, with the first overseas outlet scheduled to open in the United States in October 2025. Franchisees require an initial investment of 300,000 to 350,000 yuan (excluding rent), covering加盟费 (franchise fees),装修费 (renovation costs), and培训费 (training fees). The company claims a 60% gross margin and a payback period of 8 to 12 months, using湿粉 (wet noodles) for faster service. Despite current controversies,招商人员 (recruitment staff) report strong interest from potential franchisees, though rigorous screening processes are in place.
Financial Projections and Growth Sustainability
Data from Baijia Akuan Food shows that MaLiuJi’s procurement growth slowed from 245.65% in 2023 to 15.52% in 2024, indicating market saturation or operational bottlenecks. The offline push aims to counterbalance online declines, but the expansion’s success hinges on resolving quality issues. If mold controversies persist,加盟商 (franchisees) may hesitate, threatening the 300-store target. MaLiuJi’s operational challenges in maintaining product consistency could undermine its offline ambitions, especially as consumer awareness of food safety grows.
代工模式 and Supply Chain Vulnerabilities
MaLiuJi’s heavy reliance on third-party manufacturers is a core aspect of its operational challenges. While this model enables rapid scaling, it introduces significant risks to quality control and brand integrity.
Risks Associated with Third-Party Manufacturing
The mold incidents underscore the pitfalls of代工生产 (OEM production). MaLiuJi’s primary manufacturer, Baijia Akuan Food, derives substantial revenue from代工业务 (OEM services), with MaLiuJi as its largest client since 2022. However, the separation of brand and production allows for quality lapses, as seen in the repeated sterilization failures. Other MaLiuJi products, such as自热煲仔饭 (self-heating rice), face similar risks. This model demands rigorous oversight, which MaLiuJi has yet to demonstrate effectively. The company’s apologies and batch recalls have not prevented recurrences, suggesting systemic issues in its supplier management protocols.
Lessons from Past Quality Incidents
Previous responses to quality crises involved public statements and temporary下架 (product removals) from stores. Yet, the recurrence of mold in later batches indicates inadequate long-term solutions. MaLiuJi must invest in stronger quality assurance systems, including independent audits of代工厂 (OEM factories) and real-time monitoring of production lines. For investors, these operational challenges serve as a warning about the risks of asset-light models in the food industry, where brand reputation is easily tarnished by supply chain failures.
Market Implications and Investor Outlook
MaLiuJi’s current predicament offers critical insights for stakeholders. The brand’s ability to navigate these operational challenges will determine its future in China’s competitive food and beverage sector.
Short-term vs. Long-term Challenges
In the short term, MaLiuJi must address the mold contamination swiftly to restore consumer confidence. This includes transparent communication, enhanced quality checks, and possibly diversifying its manufacturing partners. Long term, the company needs to reduce its dependence on founder-driven marketing and build a more resilient brand identity. The slowdown in procurement growth signals that MaLiuJi’s initial explosive expansion is plateauing, necessitating strategic pivots.
Key Metrics for Monitoring Recovery
Investors should track several indicators: sales trends on Douyin and other e-commerce platforms, franchisee satisfaction and retention rates, and frequency of quality-related complaints. Improvements in these areas would signal that MaLiuJi is overcoming its operational challenges. Additionally, the success of the US store launch could indicate international viability, though cultural adaptations will be crucial.
MaLiuJi stands at a crossroads, facing significant operational challenges that threaten its ambitious growth plans. The recurrent mold issues and sales decline highlight urgent needs for better quality control and diversified marketing. However, the aggressive offline expansion offers a potential path to recovery, provided the company can assure franchisees and consumers of product safety. Investors should watch for concrete actions from MaLiuJi’s management, such as supply chain reforms and transparent reporting, before considering renewed confidence in the brand. The coming months will be critical in determining whether MaLiuJi can transform its challenges into opportunities for sustainable growth.