China

UPDATE: China’s Police Department Commences Investigation into Shanghai Husi Food

This article was originally published on July 22, 2014 at 11:16 pm EST

Summary:

  • Shanghai’s Police Department has commenced an investigation into Shanghai Husi Food which has been found to supply suspect food to McDonald’s (MCD) and KFC. Shanghai Husi Food also supplies food to other multinational chains in China including Starbucks (US: SBUX), Papa John’s (US: PZZA). Yoshinoya (JP: 9861), Burger King (US: BKW), Subway and TGI FRiDAY’s, as reported by Sina.
  • Regulators have sealed more than 100 metric tons of suspect food from fast food companies.

Why It Matters:

  • The investigation indicates that senior managers of Shanghai Husi Food may have been aware of suspect food and gave workers approval to reprocess meat products that had outlived their shelf lives and supply them to fast food chains.
  • Regulators are endeavoring to determine whether Shanghai Husi Food’s parent company, American OSI Group, was aware of such practises and how long they have been in operation.
  • The local article suggests that food regulators throughout China are asking food companies to check their food supplies. Other local food suppliers, such as Henan Shuanghui Investment & Development (CH: 000895), might also be affected by this incident.

Referencing: [SGI] Shanghai Husi Food Supplies Suspect Food to McDonald’s and KFC; Also Provides Food to Starbucks, Papa John, Yashinoya and Burger King