Monday, July 28, 2014

U.S. group overhauls China business in meat safety scandal

Customers walk out of a Starbucks coffee store in Shanghai By Samuel Shen and Kazunori Takada SHANGHAI (Reuters) - A leading U.S. meat supplier said on Monday that a Chinese unit at the center of a food safety scandal had issues that were "absolutely inconsistent" with the group's high standards. "This is my company and events like these have a personal toll ... they simply don't represent the values I stand for or those of my company," Sheldon Lavin, the millionaire chairman, CEO and owner of Illinois-based OSI Group LLC told a news conference in Shanghai. OSI said it was suspending operations at Shanghai Husi Food and would review all its China plants in a bid to limit further damage after losing two major customers. KFC and Pizza Hut parent Yum Brands Inc last week severed its ties with OSI, while the Japan and Hong Kong units of McDonald's Corp said they were ending their relationship with the U.S. meat processor's Chinese unit following allegations it mixed expired meat with fresh produce.








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