CHINA: KFC China to step up supplier checks after safety scare

Record ID: 1405816

  • Title: CHINA: KFC China to step up supplier checks after safety scare
  • Date: 25th February 2013
  • Summary: BEIJING, CHINA (FEBRUARY 25, 2013) (REUTERS) EXTERIOR OF KFC RESTAURANT LOGO OF KFC RESTAURANT PEOPLE WALKING INTO KFC RESTAURANT VARIOUS OF PEOPLE HAVING BREAKFAST IN KFC RESTAURANT YUM! EXECUTIVES AND INDUSTRY REPRESENTATIVES STANDING BEHIND SIGN FOR LAUNCH OF KFC CHINA'S NEW MARKETING CAMPAIGN SIGN READING: "OPERATION THUNDER" PEOPLE SITTING CHAIRMAN AND CEO OF YUM! RESTAURANTS CHINA SAM SU WALKING TO PODIUM (SOUNDBITE) (Mandarin) CHAIRMAN AND CEO OF YUM! RESTAURANTS CHINA SAM SU SAYING: "The chicken problem in China is not as serious as some people think. But undeniably there are still some issues around. No matter how much effort we make we will not avoid (facing them) as long as there are some problems. No matter how others do, we must ask ourselves to do better. This will always be our attitude." VARIOUS OF MANAGING DIRECTOR OF MAHON CHINA, DAVID MAHON STANDING (SOUNDBITE) (ENGLISH) MANAGING DIRECTOR OF MAHON CHINA, DAVID MAHON, SAYING: "I think they are doing the right thing, but ultimately, as in the United States and Europe, it comes down to local regulation, local government regulation. And to that extent you really can't replace that with the self-governance of a company. Even a company doing its best will not control all the inputs going into its supply chain." VARIOUS OF PEOPLE EATING IN KFC RESTAURANT VARIOUS OF PEOPLE WALKING ON THE STREET (SOUNDBITE) (MANDARIN) 23-YEAR-OLD YANG JIANFEI SAYING: "I think I will (choose KFC) to take food if I'm in a hurry. China's domestic fast food companies are not as developed as overseas brands. So I still would like to choose KFC or McDonalds if I have a need." PEOPLE WALKING ON THE STREET (SOUNDBITE) (MANDARIN) 30-YEAR-OLD YANG HE SAYING: "I myself would like to eat (KFC food), but I definitely will not allow my child to eat. It's been like this for a long time. I only allow my child to eat home-made food. My child is almost three years old. In the past three years, my child just eats at home."
  • Embargoed: 12th March 2013 22:04
  • Keywords:
  • Location: China
  • Country: China
  • Topics: Business,Health,Industry
  • Reuters ID: LVA9TPT0063THC89SEMLAJFKUJ6A
  • Aspect Ratio: 4:3
  • Story Text: KFC China announces comprehensive quality assurance initiatives to strengthen poultry safety with launch of new marketing campaign following a safety scare last year.

    Yum Brands Inc announced a quality assurance programme and marketing campaign on Monday (February 25) aiming to strengthen monitoring of its suppliers and improve testing of poultry after a safety scandal last year.
    It came after a steep drop in business at its KFC restaurants in China earlier this month with a reported six per cent decline in fourth-quarter 2012 sales at established restaurants there.
    The campaign launched is called "Operation Thunder".
    Chairman and CEO of Yum Restaurants China, Sam Su, said the company was determined to do better.
    "The chicken problem in China is not as serious as some people think. But undeniably there are still some issues around. No matter how much effort we make, we will not avoid (facing them) as long as there are some problems. No matter how others do, we must ask ourselves to do better. This will always be our attitude," Sam told a news conference in Beijing.
    Some experts say company vigilance alone would not provide a total solution.
    "I think they are doing the right thing, but ultimately, as in the United States and Europe, it comes down to local regulation, local government regulation. And to that extent you really can't replace that with the self-governance of a company. Even a company doing its best will not control all the inputs going into its supply chain," said David Mahon, managing director of Mahon China, an investment management company.
    The scandal erupted when the official China Central Television reported in late December that some of the chicken supplied to KFC and McDonald's Corp contained excess amounts of antiviral drugs and hormones used to accelerate growth.
    Chinese authorities have cleared McDonald's and KFC owner Yum Brands Inc of charges they both had served chicken laced with excessive chemicals, but the iconic U.S. chains - long considered to serve safer and higher quality food than domestic chains - remained under fire from local media and consumers.
    Consumers had mixed feelings about the issue.
    "I think I will (choose KFC) in a hurry. China domestic fast food company is not as developed as overseas brands. So I still would like to choose KFC or McDonald's if I have a need," 23-year-old Yang Jianfei said.
    Yang He, 30 and a parent said he would rather not let his child eat fast food.
    "I myself would eat (KFC), but I definitely will not allow my child to eat. It's been like this for long time. I only allow my child to eat home-made food. My child is almost three-year-old. In the past three years, my child just ate at home," he said.
    China is no stranger to food safety scares despite repeated government campaigns to crack down on the problem.
    Yum, which has more than 5,100 restaurants in China and is the largest Western restaurant operator in China, pulled some products in 2005 because they contained "Sudan Red" dye, which was banned from use in food due to concerns it could lead to an increased risk of cancer.
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