Two-Thirds Of Chinese Consumers No Longer Trust Western Fast-Food As "Meat Scandal" Spreads Across Asia

Tyler Durden's picture

As if the Chinese meat scandal was not a big enough concern for Western fast-food firms, The WSJ reports that the crisis is spreading across Asia as Yum Brands and McDonalds sever links with US-owned Shanghai Husi Food Company, which is accused of selling expired beef and chicken, pulling supplies of chicken from restaurants in Japan. Perhaps even more worrisome for American fast-food companies who have expanded aggressively and over-hyped the growth opportunities in China, a second Sina survey started yesterday, featuring 25,000 respondents, found 77% believed the restaurant brands affected had been aware of Husi’s faulty practices, while 69% said they would no longer dine at the restaurants run by the Western companies.

As WSJ reports,

More companies are cutting ties to a U.S.-owned Chinese food supplier over worries that they may have served expired meat to their customers, as they moved to shore up their reputations in a market known for food-safety problems.

 

The issue, which on Monday prompted KFC owner Yum Brands and McDonald's China arm to drop the China-based food supplier, on Tuesday spread to Japan. McDonald's on Tuesday said its outlets there cut ties with Shanghai Husi Food Co., an arm of OSI Group Inc. of Aurora, Ill. Shanghai Husi has been accused in Chinese media reports of selling meat products beyond their shelf life.

 

McDonald's said it pulled chicken nuggets supplied by the company, affecting 10% of its Japanese stores, a move that will create a short-term nugget shortage until new orders arrive from a supplier in Thailand.

 

"In this case we do feel that we were a bit deceived relative to one of these plants," said McDonald's CEO Don Thompson, speaking on the company's earnings conference call on Tuesday.

 

McDonald's, which has more than 2,000 outlets in China, is working with Chinese authorities to investigate, a company spokeswoman said. "It appears from the initial news report that these alleged mis-practices have been hidden from McDonald's," she said.

 

OSI representatives in China didn't respond to requests for comment on Tuesday. On Monday the company said it believed the Chinese media reports depicted an isolated incident, but said it takes full responsibility and would act accordingly.

 

In China, Starbucks, Burger King, and the 7-Eleven convenience store chain and others on Tuesday also said they cut ties with Shanghai Husi.

 

Other food companies that have sourced their meat from Husi include the Swedish furniture retailer, Ikea, and the Chinese fast-food chain, Dicos.

But it appears the damage is done...

A Sina survey started yesterday, featuring 25,000 respondents, found 77% believed the restaurant brands affected had been aware of Husi’s faulty practices, while 69% said they would no longer dine at the restaurants run by the Western companies.

 

...

 

A crisis in confidence in China’s food industry emerged after melamine was found in domestically produced baby formula in 2008. That scandal left 300,000 babies sick and resulted in six premature deaths.

 

Other stories including fake eggs, diseased pork, recycled oil, mislabelled meat have only led to further calls for industry reform.

 

With new food scandals arising every few months on the mainland, Western fast-food brands are generally seen as being more trustworthy than local restaurants.

 

However, this trust may have been badly affected by this new scandal surrounding Husi.

*  *  *
On the bright side, all these firms will have an alternate scapegoat for weak earnings other than the weather...

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Dr. Engali's picture

When I think of the McDonalds chain, I usually don't associate the word "food" with it.

101 years and counting's picture

i blame the fed.  there are massive repercussions for printing money.  

BaBaBouy's picture

WOW, It Takes A LOT To Gross-OUT The Chinese, But They Did It!!!

RevRex's picture

So who will be the first to blame "the Jews"?

BurningFuld's picture

The wood pulp would only improve those things.

john39's picture

don't you worry ronald mcdonald... as long as americans have two dollars in their pockets, they will grovel to ingest your soylent brown/wood pulp/gmo goodness, because they know that obamacare will fix them all up when they get tumors growing out every orafice on their bodies...

jbvtme's picture

sir...that rat (cat, frog, dog, lizard, beetle) is it organic?

krispkritter's picture

At least here in America, we'll always have that healthy staple; hot dogs! https://www.youtube.com/watch?v=2NzUm7UEEIY

TeamDepends's picture

Meanwhile in Obamastan (Michigan), jack-booted federales raid organic farm and force farmers to dump 248 gallons of whole milk and 1200 eggs.  For the children. http://www.theorganicprepper.ca/michigan-dept-of-agri-forces-farmer-to-d...

old naughty's picture

Fuk-u brought plutonium into the food chain and nowHu-si introduced sick meat?

Asia (Asians) is fuk-hu (same chinese character, meaning fortune or luck).

Fortune, luck ?

Fucked !

HamRove's picture

Mmmmm....woodpulp. *drool*

I order mine with extra woodpulp. 

WhyDoesItHurtWhen iPee's picture

As an old carpenter, when I ingest wood pulp, I prefer oak sawdust.

youngman's picture

Cutting fresh pine...I love that smell...better than a new car smell

deKevelioc's picture

When you write that, sport, you fan the flames of the issue.  You're not too bright; are you?

Zorrohodge's picture

I think it was the guy that blamed Greenspan/Bernanke/Yellen for adopting inflationary policies, or it might have been the guy that blamed Strauss neo-conservative attitudes to freemarkets and liberal regulation.

Zorrohodge's picture

I think it was the guy that blamed Greenspan/Bernanke/Yellen for adopting inflationary policies, or it might have been the guy that blamed Strauss neo-conservative attitudes to freemarkets and liberal regulation.

Zorrohodge's picture

I think it was the guy that blamed Greenspan/Bernanke/Yellen for adopting inflationary policies, or it might have been the guy that blamed Strauss neo-conservative attitudes to freemarkets and liberal regulation.

The_Dude's picture

Bad actors beget more bad actors....

Renewable Life's picture

I wish Americans would do the same!!

Groundhog Day's picture

billions and billions served......a heart attack, diabieties, high blood pressure, and lets not forget OBESITY

pods's picture

You know what you get when you eat too much?

Diabeetus.

pods

upWising's picture

It is said that Chinese diners will eat anything with four legs (except a table) and anything that flies (except an airplane).

Ignatius's picture

Capitalism and market economy logic, for all its benefits, says that if I can put a turd on a plate, charge $5 and convince you it's dinner, then that's just good business.

Colonel Klink's picture

Do you want flies with it?

FIFY

Note:  Works on two levels. ;)

Miffed Microbiologist's picture

I don't think flies would find McD " food" appetizing. Stick one outside next to one you made at home and do some time lapse photography. That crap Scares even the mold away.

Miffed;-)

BaBaBouy's picture

Oh Well, Back To Cat Chow...

NoDebt's picture

I associate $8/hour jobs, plus HR guidance on how to apply for government assistance programs to supplement that "living wage".

Uncle Remus's picture

I don't think they are signatory to the Geneva Convention, so no worries.

Ghordius's picture

China as signed and ratified three out of the five protocols of the Geneva Convention

in contrast, the US has signed four of them... but only ratified two

http://en.wikipedia.org/wiki/List_of_parties_to_the_Geneva_Conventions

RiskyBidness's picture

Why dine anywhere other than the well valued Burrito stock that is CMG.  $650 stock price.  Can you say 68x Earinings.  BTFDATH

Magnum's picture

Well I've been in Hong Kong for the last three days and what's reported on ZH doesn't match the crowds I've seen at every McDonalds (and there are many here). Maybe the folks here didn't get the memo yet.

slightlyskeptical's picture

30% remainder stills means a whole bunch of Chinese.

Eirik Magnus Larssen's picture

That or people simply don't care any longer. With the air pollution in China being what it is, it's easy to become jaded over such issues.

Uncle Remus's picture

Air you can cut with a butter knife, food not so much.

Dr. Engali's picture

What people say they are going to do, and what they actually do has always been two different things. How many millions of pounds of beef recalls have we seen here in the U.S? That hasn't stopped Joe sixpack from taking a big old bite of some sawdust infested pink slime.

dobermangang's picture

It's Whopper Wednesday today.  I'm eating a Whopper.  Yum.

FrankieGoesToHollywood's picture

Every week I swear off McDonalds....

PoliticalRefugeefromCalif.'s picture

..MacDonalds is a happy place... a clean and happy place.. a snap snap snappy place..

my  how the times have changed.

boattrash's picture

Seems nobody is seeing the upside. Food Prices in US will drop as our supermarkets are flooded with this crap.

fallout11's picture

Our supermarkets are already flooded with this crap (from GMO-ed  frankenveggies to hormone-laced vat grown shmeat), shrinking package sizes, and prices are still up. "Real" food now costs x5 as much as 10 years ago.

Blackfox's picture

When we had the horsemeat scandal in the UK, people said they was going to boycott all the big supermarkets. 2 weeks later everything was back to 'normal'.

The sheeple don't give a fuck.