McDonald's Corp. and Yum Brands Inc. are facing a new food safety scare in China, Reuters reported.
McDonald's and KFC parent Yum apologized to customers on Monday after Chinese regulators shut a local meat supplier following a television news report that showed workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date with fresh meat. The companies said they'll stop using the supplier.
The report, which focused on McDonald's and Yum, brings the pair back into the firing line following the 2012 scandal that involved chicken pumped with excessive amounts of antibiotics. It's unclear whether the meat supplier, a local unit of U.S.-based food provider OSI Group LLC, may have sold goods to other clients too.
The Shanghai Municipal Food and Drug Administration shut down Shanghai Husi Food Co. Ltd., a unit of Aurora, Ill.-based OSI, on Sunday after the local Chinese TV broadcast aired. In addition to footage of the meat safety violations, the program showed workers saying that if clients knew what they were doing, the firm would lose its contracts.
A China-based official of OSI said the firm was working with the local government to investigate the matter, but declined to comment further. OSI, which has close to 60 manufacturing facilities worldwide and had revenue of over $5 billion in 2012, has been supplying McDonald's in China since 1992 and Yum since 2008, according to its website.