McDonald's and Yum Reveal China Suppliers in Wake of Shanghai Husi Meat Scandal
Food retailers McDonald's and Yum Brands, which have been hit by the recent rotten meat scandal in China, have released details of their suppliers in China upon request from Shanghai authorities.
The companies along with Burger King, Dicos and Carl's Jr have published the normally undisclosed details, according to the Shanghai Municipal Food and Drug Administration.
Following the scandal involving Shanghai Husi, which allegedly sold expired meat to food chains, the authorities have been taking various steps to ensure food safety in the country.
The Chinese local media earlier reported that Shanghai Husi Food, owned by US-based OSI Group, sold chicken and beef past expiry dates to a number of international food chains.
Shanghai's Food and Drug Administration raided the suppliers' facilities and seized more than 5,000 boxes of expired meat. Police also detained five employees of the firm, including its quality manager.
Nine companies including KFC, McDonald's, Burger King and Papa John's reportedly used products ranging from beef, chicken and pork from Shanghai Husi.
Following the outbreak of the scandal, the companies apologised to Chinese customers and said they were taking the products concerned off the shelves.
On 21 July, operations at Shanghai Husi were suspended and all of its meat products were ordered to be removed.
The scandal has taken its toll on the reputations of food retailers like McDonald's and Yum hitting their bottom lines.
McDonald's has said its global comparable sales declined 2.5% in July, partly due to the rotten meat scandal. Sales in the Asia/Pacific, the Middle East and Africa region plunged by 7.3% during the month.
Yum said earlier in August that the scandal had caused "significant, negative" damage to sales at its KFC and Pizza Hut restaurants.
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