Executive Briefings

KFC Sales in China Bounce Back Following Squawk Over Food Safety

An uproar in China over the safety of chicken sold at KFC "has been longer lasting and more impactful than we ever imagined," according to the chief executive of parent company Yum Brands.

But even after a "sharp sales decline" brought on by reports last month of poultry pumped up with excessive antibiotics, Yum's David C. Novak said the company will forge ahead in Asia.

China was responsible for 42 percent of Yum's profit last year, Novak said. Residents are becoming wealthier and are increasingly eager to mimic American fast-food habits.

In such a massive market -- especially one that has recently begun lashing out against mislabeled, ill-prepared and counterfeit products -- a food safety slip-up from a major brand was bound to have severe consequences.

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Keywords: supply chain risk management, value chain, quality control, quality assurance, food safety, antibiotics in food

But even after a "sharp sales decline" brought on by reports last month of poultry pumped up with excessive antibiotics, Yum's David C. Novak said the company will forge ahead in Asia.

China was responsible for 42 percent of Yum's profit last year, Novak said. Residents are becoming wealthier and are increasingly eager to mimic American fast-food habits.

In such a massive market -- especially one that has recently begun lashing out against mislabeled, ill-prepared and counterfeit products -- a food safety slip-up from a major brand was bound to have severe consequences.

Read Full Article


Keywords: supply chain risk management, value chain, quality control, quality assurance, food safety, antibiotics in food