Meat&Poultry -- August 2014 - 10

Business Notes

Burger King cuts ties with OSI China
Burger King Worldwide Inc. stopped sourcing meat from

to return supplies to normal levels as soon as possible.

HUSI Food Co. Ltd. processing plants in Shanghai, Chi-

In a statement posted on OSI Group's website, David

na, after the company was implicated in a food-safety

McDonald, president and COO, said: "Our internal in-

scandal. HUSI Food is a subsidiary of OSI Group LLC.

vestigation is still ongoing. We are working closely with

"Last week, Burger King China took swift action and

the Shanghai CFDA to ensure that we meet their expec-

suspended the sale of any products from the HUSI fac-

tation. To date, our investigations have found issues that

tories in Shanghai that had supplied our restaurants," the

are absolutely inconsistent with our internal requirements

company said in a statement. "Food quality and safety

for highest standards, process and policies."

are the highest priority at all Burger King restaurants."

OSI also implemented a management and structural

Food-safety authorities closed a meat-processing plant

shake-up for its operations in China. McDonald said its

run by Shanghai HUSI Food Co. after a television report

China operations will become part of the OSI Interna-

depicted workers processing meat picked up from the

tional umbrella, directly embedded into the corporate

floor and mixing fresh meat with expired meat. Police

organization rather than operating as a separate, decen-

in Shanghai detained five people - including the head of

tralized entity. China operations were renamed OSI In-

HUSI Food and the plant's quality manager - for their

ternational China.

alleged involvement in the scandal.

The DaOSI slaughter complex, located in Xihua Coun-

Sheldon Lavin, chairman, CEO and owner of OSI

ty, Henan Province, is a joint venture between OSI and

Group, issued an apology to the company's customers

Doyoo Group, a leading Chinese poultry company. OSI

in China following the unsafe food-handling practices.

Henan Foods, a further-processing facility for value-add-

Lavin said the events at the Shanghai facility violated

ed meats, also is located Xihua County, Henan Province.

the tenets of OSI and the company's values. He said he im-

OSI's other China poultry operations include OSI

mediately dispatched a team of global experts to the facility

Group (Weihai) Poultry Development Co. in Shandong

upon hearing the news, and more experts are on the way.

Province and SunOSI Poultry Development Co. in Fuji-

OSI Group counts among its customers large food-

an Province. OSI Weihei Foods, OSI's further-processing

service chains, including McDonald's Corp. and Yum!

plant in Shandong Province, produces specialty products

Brands International. Yum! also stopped using OSI as

and covers approximately 7,500 square meters. Fujian

a supplier. McDonald's has decided to remain with the

SunOSI is a joint venture with Fujian Sunner Develop-

company. But Burger King decided it would be safer to

ment, a leading publicly traded Chinese poultry company.

stop using products from the Shanghai plant.
"We launched a full investigation into this matter and, as
a precaution, have decided that we will no longer source any

"Food safety is never compromised at OSI," McDonald concluded. "It is the cornerstone of our business and
for our customers.

products from Husi or any of its related entities throughout China," the company said in its statement. "This de-

to reclaim the respect and trust of our customers, the

cision may impact the availability of some of our prod-

government, and consumers. We are committed to do-

ucts in China on a temporary basis, but we are working

"We understand that we still have a lot of work to do

ing this work."

* Meat&Poultry * August 2014 * www.MeatPoultry.com

http://www.MeatPoultry.com

Meat&Poultry -- August 2014

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