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China supplier sold McDonald's, KFC expired meat Print

McDonald's and KFC in China faced a new food safety scare Monday after a Shanghai television station reported a supplier sold them expired beef and chicken.
 
The companies said they immediately stopped using meat from the company, Husi Food Co., Ltd. The official Xinhua News Agency said authorities had ordered the supplier to suspend operations and were investigating.
 
Dragon TV said on Sunday that Husi, owned by OSI Group of Aurora, Ill., repackaged stale beef and chicken and put new expiration dates on them. It said they were sold to McDonald's, KFC and Pizza Hut restaurants.
 
The report added to a series of food safety scares in China that have battered public confidence in dairies, fast food outlets and other suppliers.
 
McDonald's Corp. and Yum Brands Inc., which owns KFC, Pizza Hut and Taco Bell, said in separate statements they were conducting their own investigations.
 
KFC is China's biggest restaurant chain, with more than 4,000 outlets and plans to open 700 more this year. The company was badly hurt after state television reported in December 2013 that some poultry suppliers violated rules on drug use in chickens. Yum said KFC sales in China plunged 37% the following month. KFC launched an effort to tighten control over product quality and eliminated more than 1,000 small poultry producers from its supply network.
 
China has suffered a string of product scandals over the past decade in which infants, hospital patients and others have been killed by phony or adulterated milk powder, drugs and other goods.
 
Foreign fast food brands are seen as more reliable than Chinese competitors, though local brands have made big improvements in quality.
 
The high profile of foreign brands means any complaints involving them attract attention, while their status as foreign companies with less political influence means Chinese media can publicize their troubles more freely.

Ref: http://www.usatoday.com/story/money/business/2014/07/21/mcdonalds-kfc-china-scandal/12929885/
 
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