Yum Cuts Ties with Shanghai Meat Supplier

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SHANGHAI, China — Yum Brands has ended its relationship with meat supplier OSI Group LLC after factory workers at Shanghai Husi Food Co. Ltd. were reportedly found selling expired meat. After an investigation, McDonald’s has decided to stick around.

Reps from Yum Brands announced the company will immediately terminate all procurement from OSI, which operates Shanghai Husi Co. Ltd. “It is difficult to believe and completely unacceptable that the management of Shanghai Husi, a division of OSI, would oversee and organize illegal and dishonest operations,” the Louisville, Ky.-based company, which owns KFC, Taco Bell and Pizza Hut, said in a statement. “Yum China unequivocally condemns these actions.”

Meanwhile, reps from McDonald’s announced that the company will continue using Husi’s other operations in the country after a local investigation by Chinese authorities found no other issues in its factories. “We and our suppliers have a decades-long proven track record of providing safe, quality food to our customers worldwide,” a representative from McDonald’s, based in Oak Brook, Ill., said in a statement. “Husi is taking swift action by investigating what happened and overhauling its safety procedures. We have been in direct contact with OSI’s global leaders; as an added assurance of uncompromised safety, they are sending their top food-safety experts to China to provide expertise on operations.”

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