Yum Brands Inc’s China division severed ties to OSI China after Shanghai police detained five people from that supplier’s meat processing factory at the centre of a food safety scare that has ensnared several major Western brands.
Shanghai police said on Wednesday the five individuals being held included the head of Shanghai Husi Food Co Ltd as well as its quality manager. "Yum China has decided to immediately terminate all procurement from OSI China," including Shanghai Husi, Yum said in a statement.
KFC and Pizza Hut parent Yum, McDonald’s Corp and coffee chain Starbucks Corp are among global brands that have pulled products from their outlets after it emerged that Shanghai Husi supplied expired meat to clients in China, as well as Japan, in the latest in a series of food scandals in the country.
(Source: CNBC)