Thursday, July 24, 2014

OSI Meat Scandal in China Causes Yum Brands to Terminate Deal

OSI Meat Scandal in China Causes Yum Brands to Terminate Deal

It isn't a household name, but the company at the center of a food scandal in China helps make some of the world's most popular foods, including the Big Macs and Quarter Pounders served at McDonald's locations.
OSI Group, a privately-held company based in Aurora, Illinois, was thrust into the spotlight this weekend when a Chinese TV station reported that one of its Shanghai plants repackaged old beef and chicken and slapped new expiration dates on them. The scare has ensnared chains including McDonald's, KFC, Burger King and Starbucks, all of which got ingredients from a unit of OSI (pronounced OH-see) in the region called Husi FoodCo.
The controversy deepened Wednesday when five workers for Husi, were detained by police. An official with China's food safety agency told the Xinhua News Agency that some of the illegal conduct it uncovered was an arrangement "organized" by Husi.
None of OSI's more than 50 other plants around the world have been implicated and the company noted in a statement that it was "appalled by the report and is dealing with the issue directly and quickly."
A representative for OSI in the U.S. declined to provide comment beyond the statement.

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