New Sanlu seeks to shake off image tainted by scandal

"Our market position is totally different from the past, which had focused on rural markets. Organic food represents the high-end food market and we are determined to become the top organic food producer in China," she said.

The company's products are already available in domestic supermarkets such as Shanghai-based Century Mart. Jiang said the company is also approaching multinational supermarkets such as Wal-Mart to discuss cooperative deals.

But skepticism in the brand remains. Analysts say it was a highly risky move to purchase the trademark and then re-use it in the food market.

Zhang Ling at Beijing-based Hejun Consulting said although Zhejiang Sanlu is a different company, the image from 2008 has taken root in customers' minds.

"The Sanlu brand was valuable when the former dairy producer was at its peak, but now, I would say it is worthless," he said.

Before the 2008 milk powder scandal, Sanlu had assets of more than 15 billion yuan, Zhang said.

"The initial image of a brand is very important. The poison milk powder scandal had already damaged the brand image, which will take maybe dozens of years for customers to accept again," he said.