The American-owned OSI Group, the parent company of Shanghai Husi Food Co., which is under investigation for allegedly selling expired meat, has ordered a recall of all products made by the subsidiary. Meanwhile, business at some of the biggest names in the fast food industry has taken a hit as a result of the scandal.

The American-owned OSI Group has ordered a recall of all products made by the subsidiary.

Heads of the OSI Group are now in China handling what has become a PR disaster. Its subsidiary Shanghai Husi Food allegedly sold expired meat to global fast food chains. The company is promising a new management team for China and a new start.

OSI had previously apologized to its customers, calling the case an isolated incident.

But a preliminary investigation by the Shanghai Food and Drug Administration showed otherwise. Authorities have announced the seizure of more than 1,000 tons of meat products from OSI facilities in China and called what had been going on at Shanghai Husi organized and planned, not by any individual's discretion.

The Aurora-based OSI Group is one of the largest privately-held food processing companies in the world. The company reprocesses meat products and supplies them to transnational fast-food chains including McDonald's, KFC, Pizza Hut, Subway, Starbucks and even IKEA restaurants.

Following the scandal, many fast food restaurants across China had to slim down their menu and stop serving beef and chicken that could have been sourced from Shanghai Husi. Some stores were even shut down temporarily as a result of the scandal.

The scandal was first triggered by a Shanghai television report showing staff at Shanghai Husi reprocessing long expired meat. The report also alleged the firm forged production dates.

Chinese police have detained five people as part of the investigation.

Food safety has been a big concern for Chinese consumers. And authorities have stepped up inspections and punishments for food-related crimes after a series of scandals in recent years.

Go to Forum >>0 Comment(s)