logo
Share SHARE
FONT-SIZE Plus   Neg

WSJ: Yum! Brands Receives Shanghai Regulators' Support On Safety

The Shanghai Food and Drug Administration gave Yum! Brands Inc. (YUM) some shelter from criticism by China's state-run media of its food-safety practices, saying chicken sampled from the U.S. restaurant company's KFC arm complied with government limits on antibiotics, the Wall Street Journal reported.

However, the Shanghai Food and Drug Administration or SFDA is planning to conduct further investigations of potential food-safety violations by the company. The SFDA also reportedly said that tests showed what it called suspicious levels of an antiviral drug that will prompt additional attention.

In a filing with the U.S. Securities and Exchange Commission on Friday, the company said it is cooperating fully with the Chinese government's review of two poultry suppliers who provided chicken with unapproved levels of antibiotics to KFC. These suppliers represent an extremely small percentage of product to KFC. As such, the company does not anticipate a shortage of product supply. Recent publicity has resulted in moderate sales impact the past few days.

Yum is undergoing investigations by the SFDA, which said tests conducted by a third-party agency from 2010 to 2011 found eight batches of chicken supplied by Liuhe Group Co. had levels of antibiotics that didn't meet prescribed standards.

Yum said it stopped buying chicken from Liuhe in August.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items. In an unusual incident, an Airbus operated by Singapore Airlines temporarily lost power on both its Rolls Royce engines during a flight and plunged almost 13,000 feet or 3.96 kilometers. However, pilots managed to save the Airbus through standard operational procedures and it continued on its routine path. Hormel Foods has agreed to buy organic meat products maker Applegate Farms LLC for about $775 million, as consumers increasingly use natural and organic foods in their diet.
comments powered by Disqus
RELATED NEWS
Trade YUM now with 
Follow RTT