According to Reuters and others, a major foreign-owned restaurant chain operating in China possibly used tainted meat products. An organized crime group exposed on May 2 is said to have sent falsely labeled meat products containing rat, fox and other contaminants to the Mongolian hot pot specialty restaurant chain Little Sheep which is owned by U.S.-based Yum! Brands of the U.S., operators of Kentucky Fried Chicken (KFC) and other well-known restaurant chains. This latest revelation comes to light not long after it was revealed this past January that KFC China was using chicken that had received excessive doses of growth promoting agents and antibiotics. China has become a major market for the restaurant titan, and the company is said to be at wits end as it deals with successive scandals occurring there.
Reuters, along with China’s state-run Xinhua and others reported that on the May 3, inspectors from Shanghai’s Municipal Food Safety Commission and the National Public Safety Commission searched a wholesale market in Shanghai in connection with an incident involving false labeling of sheep meat. They seized multiple packages of meat affixed with labels proclaiming “Lamb from New Zealand.” The labels, however, did not contain standard information such as dates and composition, tipping inspectors off to the fraud.
Upon further examination, inspectors discovered invoices indicating fraudulent meat product had also been sold to restaurants, including the Little Sheep chain.
Two days prior to the search, Chinese security authorities announced they had uncovered a criminal gang selling meat from small mammals, such as rats, that had been falsely labeled as lamb. The investigation, which had been ongoing for three months, resulted in the arrest of 904 individuals on suspicion of selling contaminated and mislabeled meat and the confiscation of 20,000 tons of fraudulently labeled meat products. According to Xinhua, there were instances of illegal chemicals also being mixed into the meat. The group is believed to have sold more than 160 million yen (approx. US$1.6 million) worth of tainted product since 2009.
Brands’ Images Take a Hit
Little Sheep was founded in Baoutou, Inner Mongolia, China in 1999. The restaurant’s main dish is lamb served with two types of specialty broth for cooking. Its Mongolian-style hot pot offerings proved popular, and the chain was listed on the Hong Kong stock exchange in 2008. In 2011, it was bought out for approximately 580 million U.S. dollars by Yum! Brands, which was making a major move into the Chinese market. Currently there are about 300 Little Sheep restaurants operating in China.
Yum! also operates the Kentucky Fried Chicken, Pizza Hut and Taco Bell franchises, and the Chinese market, anchored by 5,300 KFC outlets, accounts for more than half of the company’s global sales.
In January, however, it came to light that even though antibiotics in excess of standards were detected in chicken meat the company procured during 2010 and 2011, KFC China neglected to disclose the facts and report the information to authorities, continuing to illegally use the meat until 2012. This revelation, along with the outbreak of avian flu in April, has driven down customer numbers.
Local media reported that KFC sales in China for March were down 16 percent year-on-year, and that an even greater drop was expected for April.
Concerning the tainted lamb meat, Yum! is currently refraining from providing any comment. However, further damage to the company’s brands is inevitable, which could prompt it to review its global strategy of anchoring itself to the Chinese market.
Source: Sankei Express

Major Japanese noodle chain is closing on Christmas Eve so workers can spend time with families
Is China’s don’t-go-to-Japan warning affecting tourist crowds in Shibuya’s Don Quijote?
Foreign driver’s license conversion test passes plummet from over 90% to 33% in Japan
Parasite movie releases free official wallpapers to download as backgrounds for video calls
Popular Japanese ramen restaurant Ichiran’s lucky bags are great value for money
Major Japanese noodle chain is closing on Christmas Eve so workers can spend time with families
Is China’s don’t-go-to-Japan warning affecting tourist crowds in Shibuya’s Don Quijote?
Foreign driver’s license conversion test passes plummet from over 90% to 33% in Japan
Parasite movie releases free official wallpapers to download as backgrounds for video calls
Popular Japanese ramen restaurant Ichiran’s lucky bags are great value for money
We visit the 24-hour male-only sauna just outside of Hakata Station and ponder a strange sight
Japanese convenience store chain has beer and sake dispensers that few people know about
KFC Japan opens a Christmas restaurant in Tokyo…but why???
Rumors say Tokyo’s Sensoji Temple sticks you with bad fortunes, so we bought 100 to find out
Tokyo’s Ueno Station has an unmanned noodle restaurant on its platform, and its no-joke good
Japan’s human washing machines will go on sale to general public, demos to be held in Tokyo
Nintendo’s Kirby now delivering orders at Kura Sushi restaurants, but not in Japan
Yoshinoya adds first-ever chain-wide ramen with new beef and pork-broth noodle hot pot meals
Japan considering raising international traveler departure tax even more than previously reported
Studio Ghibli stamps lift your spirits with motivational phrases from Totoro
Is China’s don’t-go-to-Japan warning affecting tourist crowd sizes in Nara?
Japanese train company is letting fans buy its actual ticket gates for their homes
Japanese town suing resident for being a jerk
New fish discovered and named “Vanderhorstia supersaiyan” for obvious reasons
Starbucks Japan unveils new Christmas goods and a rhinestone tumbler that costs 19,500 yen
Real-world Nausicaa Ghibli anime glider completes its final flight in Japan【Video】
Brand-new Pokémon park opens in Japan with larger-than-life-size Lapras【Photos】
Unique inclined elevator in Japan leads to a town that inspired Studio Ghibli’s Spirited Away
Is China’s don’t-go-to-Japan warning affecting tourist crowds in Tokyo’s Asakusa neighborhood?
The 10 best day trips from downtown Tokyo【Survey】
Naturally brown-haired Osaka student sues government for forcing her to dye her hair black
Japanese government considering tripling departure taxes to combat overtourism
Survey asks foreign tourists what bothered them in Japan, more than half gave same answer
Japan’s deadliest food claims more victims, but why do people keep eating it for New Year’s?
We deeply regret going into this tunnel on our walk in the mountains of Japan
Studio Ghibli releases Kodama forest spirits from Princess Mononoke to light up your home
Major Japanese hotel chain says reservations via overseas booking sites may not be valid
Put sesame oil in your coffee? Japanese maker says it’s the best way to start your day【Taste test】
The top 10 annoying foreign tourist behaviors on trains, as chosen by Japanese people【Survey】
No more using real katana for tourism activities, Japan’s National Police Agency says
Starbucks Japan reveals new sakura drinkware collection, inspired by evening cherry blossoms
We visit the 24-hour male-only sauna just outside of Hakata Station and ponder a strange sight
Japanese convenience store chain has beer and sake dispensers that few people know about
KFC Japan opens a Christmas restaurant in Tokyo…but why???
Rumors say Tokyo’s Sensoji Temple sticks you with bad fortunes, so we bought 100 to find out
Tokyo’s Ueno Station has an unmanned noodle restaurant on its platform, and its no-joke good
Nintendo’s Kirby now delivering orders at Kura Sushi restaurants, but not in Japan
Japan’s schoolgirl roomwear outfits are ready for winter with new, extra-warm versions
Train and transform your hero into a prime beefcake in otome romance game Muscle Paradise
10 badass four-character phrases to add to your Japanese language toolkit
Looking for a unique afternoon tea in Tokyo? Have a picnic indoors at Fruit Picnic in Harajuku
Sanrio characters take over Baskin Robbins Japan for My Melody and Kuromi’s Sweet Christmas
Studio Ghibli adds new Kiki’s Delivery Service music box to its anime merchandise shop in Japan
Classic anime Inuyasha teams up with discount shop Thank You Mart for first time with new merch
Japan’s EF English Proficiency Index rank drops for 11th straight year, hits lowest ever
Leave a Reply