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Article

22 Jul 2014

Author:
Laura Burkitt, Jacob Bunge & Julie Jargon, Wall Street Journal

China: McDonald's & Yum suspend OSI subsidiary Shanghai Husi as meat supplier after expired meat allegations

"McDonald's, Yum Suspend Meat Supplier in China", 21 July 2014

The U.S. owner of a meat supplier in Shanghai apologized and promised a swift response Monday after McDonald's Corp. and Yum Brands Inc. suspended purchases in China in the wake of allegations it sold expired chicken and beef to restaurants. McDonald's and Yum, parent of KFC and Pizza Hut, said they halted orders from Shanghai Husi Food Co., owned by OSI Group Inc. of Aurora Ill...OSI...said its executives were "appalled" by the report and apologized to its customers and consumers. The company "has formed an investigation team, is fully cooperating with inspections being conducted by relevant, supervising government agencies, and is also conducting its own internal review...and will take appropriate actions swiftly."...[Shanghai Husi] officials in China didn't respond to requests for comment...McDonald's spokeswoman Heidi Barker said Monday that if the practices described in media reports were confirmed, they would be "completely unacceptable to McDonald's."...Yum said it "will not tolerate any violations of government laws and regulations from our suppliers."

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