China food scandal spreads to Starbucks, Burger King, McNuggets

Global Business

The latest food scandal in China continues to spread, now dragging in U.S. coffee chain Starbucks, Burger King Worldwide Inc and others — including McDonald’s products from as far away as Japan.

Updated July 22, 3.:02 p.m. EDT

A Tokyo-based spokesman at McDonald’s Holdings Co (Japan) Ltd said the company had sourced about a fifth of its Chicken McNuggets from Shanghai Husi and had halted sales of the product on Monday, according to Reuters. Alternative supplies of chicken have been found in Thailand and China, the spokesman added.

Shanghai authorities on Monday vowed transparency and timely disclosure in its ongoing probe into the alleged use of stale meat in products supplied to fast food chains including McDonald’s and KFC.

Law enforcement officials had suspended production at a suburban plant of Shanghai Husi Food Co., Ltd, a unit of U.S. food supplier OSI Group, after a news program aired by Shanghai’s Dragon TV. on Sunday.

Reporters who managed to enter the Husi workshop reported they saw clear evidence that stale beef and chicken were repackaged after processing, and that their acceptable shelf-life was prolonged for another year.

The reporter allegedly obtained proof showing that the violations are systemic, rather than just limited to a few employees. According to the whistleblower, Husi Food has been cooking the books so the company could cook whatever it wanted whenever it wanted.

In the wake of the revelations, the Shanghai Municipal Food and Drug Administration closed operations at Husi Food Company and seized meat products suspected of being past their expiration date. Authorities also ordered all meat products at McDonald’s and KFC outlets that were supplied by the firm to be taken off the shelf.

McDonald’s Corp and KFC-owner Yum Brands released an apology Monday to Chinese consumers and said they would stop using the meat supplier.

Authorities launch probe into fast food supplier

At the top of the program, we look at another food safety scandal, this time involving some of the biggest names in the food industry.

Earlier on Sunday, the administration ordered that all meat products supplied by the company be taken off the shelves for safety concerns.

CHINA FOOD SCARE

Over a dozen fast food chain companies in China have been affected by using Husi’s contaminated meat product. In response, the fast food giants impacted by the scandal have issued statements and promised immediate action.

“We have stopped using all food material provided by the company and some of our restaurants nationwide may halt serving some products,” said McDonald’s.

“We have launched an investigation into the supplier and have a zero-tolerance policy for any supplier’s violations of laws and regulations,” said a statement by Yum Brands, which has ordered its KFC and Pizza Hut outlets to stop using Husi’s materials.

Starbucks, the world’s largest coffee-shop chain, said it doesn’t work directly with Husi, though one of its suppliers did. The affected item, a chicken apple panini, was only available in China and is no longer for sale, the Seattle-based company said in a statement.

Although China is no stranger to food safety scandals, the current imbroglio is unique in that Shanghai Husi is a member of the US OSI Group, and is a solely foreign-funded company.

This article was compiled with information from Dragon TV, China Daily, Xinhua News Agency, Reuters and Bloomberg.