Boston, MA 08/28/2014 (wallstreetpr) – McDonald’s Corporation (NYSE:MCD) announced recently that it would be reconsidering its relationship with OSI, in the backdrop of scandal involving expired meat in China. The Government’s investigation into the practices of this supplier is still pending.
Restaurant Chain looking for alternate suppliers
In its important to note that in the recent past, the Oak Brook, yet another restaurant chain of McDonald’s Corporation (NYSE:MCD) has dismissed its association with the U.S.-based meat supplier. It is in fact, looking forward to other suppliers such as Keystone Foods as well as Cargill Inc., in order to increase its supply capacity. A spokeswoman of the company said that one of the largest fast food chains of the world, McDonald’s is making an analysis and is evaluating its partnership with OSI. Also, she added, there was a huge possibility of replacing this meat supplier with someone else.
Results of Probe Balancing Everything
Association of McDonald’s Corporation (NYSE:MCD) with OSI and a few more suppliers is largely based on the results of investigations being carried out by the Chinese government into Shanghai Husi Food Co., a subsidiary of OSI.
Shanghai Husi under government’s scrutiny
A few authorities had accused the OSI subsidiary of selling expired meat as well as forging with the production dates of a few products like smoked-beef patties. Since past few months, it has been under scrutiny of authorities and Government in China. As per the China’s food and drug regulators, investigation is still under way. In fact, Shanghai Municipal Food and Drug Administration has also arrested five employees of OSI in the case.
McDonald’s diligence on alternative suppliers
The spokeswoman of company said that it has taken a lot of time for the fast-food chain for carrying out due diligence on alternate suppliers. On July 20, 2014, the company curtailed and suspended its association with the Shanghai Husi altogether. Quality of potential partners is being studied at present.
