Published By : 21 Jul 2014 | Published By : QYRESEARCH
Leading food brands Yum! Brands Inc. and McDonald’s Corp. have put an embargo on the purchase of meat products from a supplier in Shanghai in the backdrop of authorities investigating allegations about the Chinese supplier having sold beef and chicken products past their expiration date.
McDonalds has notified all its outlets to immediately stop the using beef and chicken products that were procured from Shanghai Husi Food Co. The company’s official microblog in China carried an announcement to this effect.
The same steps were taken by Pizza Hut and KFC, both of which are owned by Yum! Brands. Their statement, too, was made on the company’s official microblog. According to both restaurant chain majors, the move could potentially cause a shortage of certain items on the menu.
Meanwhile, authorities in Shanghai ordered the suspension of operations at Shanghai Husi pending inquiry. The ban was brought into effect on the same day as Chinese TV channel Dragon TV broadcast reports of workers at the Husi facility re-packaging and re-selling beef and chicken products that had exceeded their original sell-by date.
These allegations bring concerns about the safety of food in China back under the spotlight. In the past, food controversies have included melamine-laced baby formula and donkey meat with fox DNA.
This is the second time since 2012 that these two fast-food majors have suffered a blow on account of food safety issues from their China-based suppliers. However, authorities, having dealt with such food-quality scandals, are in a better position this time to take immediate remedial measures and instill confidence among consumers in China