Related News

Home » Business

YUM Brands ends relationship with OSI Group after meat scandal

The parent company of KFC and Pizza Hut said it has terminated sourcing food from US-based OSI Group after a meat scandal at its Shanghai subsidiary.

Yum China said in an open letter to Chinese consumers today that the company is reviewing the inspection process of its suppliers to determine how to better detect misconduct and bad faith.

Yum China added it is considering installing surveillance cameras at its suppliers.

It will also encourage whistle-blowers to expose any misconduct detrimental to food safety. Rewards will be given to informants, it said.

Yum said in a filing to the US Securities and Exchange Commission earlier this week that the Shanghai Husi incident "has brought a significant, negative impact to same-store sales at both KFC and Pizza Hut in China over the past 10 days."

McDonald’s also stopped using raw materials from OSI Group's Chinese facilities due to a customer backlash.

A Shanghai Television Station newscast reported that Shanghai Husi Food Co had been mixing “expired” and fresh meat and using fake production logs to deceive inspectors.

Five Shanghai Husi employees implicated in the scandal were detained last week, including the company’s top executive and its quality manager, according to the Shanghai Public Security Bureau.

David McDonald, president and chief operating officer of OSI Group, said at a press briefing in Shanghai on Monday that the new management team at OSI's China operations would include experts from its global operations "to ensure full compliance with the OSI Group's standards for quality."

McDonald said the company was still in the initial stages of investigating the incident.

"Why these things took place, by whom they took place and for what motives they took place, we simply can't understand," he added.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend