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KFC apologizes for not reporting tainted chicken

2013-01-11 09:41 Global Times     Web Editor: qindexing comment

KFC's parent firm Yum! Brands Inc publicly apologized to consumers Thursday for its lateness in disclosing a test result related to a contaminated chicken scandal.

Yum! admitted that poor self-inspection, internal communication and cooperation with suppliers had contributed to the incident in an open letter to consumers published on its website Thursday.

The apology came in response to recent widespread criticism for concealing the results of a self-test that revealed chicken products containing excess traces of antibiotics, and promised that the company would promptly release self-inspection information to the public and intensify quality requirements for suppliers.

Sales in Yum!'s China division fell 6 percent in the fourth quarter of 2012, worse than an earlier forecast of a 4 percent decline, the company warned in a regulatory filing submitted to the US Securities and Exchange Commission Monday.

It believed that a negative image of KFC shaped by the chicken scandal triggered the sharp sales drop in China.

Yan Qiang, an industry analyst at H&J Consulting, told the Global Times that KFC sales were not likely to rebound in the short term based only on an announcement which should have been released earlier, just after the incident occurred.

Yan believed 2013 sales would rise compared with the fourth quarter last year as consumer confidence returns, if KFC keeps all its promises and behaves responsibly in accordance with its stature as a popular food provider.

Wang Xiaomeng, a regular KFC customer in Beijing, told the Global Times Thursday that she would never trust KFC or similar chains again.

"The apology sounds like a way to deal with a public relations crisis, not an action on behalf of consumers," Wang said.

Zhang Yiwei, previously a fan of Western fast food, said it was hard for her to regain confidence in KFC immediately and that she will wait to see how KFC behaves in the future.

Chinese State media CCTV exposed in late December that Yum! was supplied with chicken that contained excessive antibiotics by Shandong's Liuhe Group Co. KFC announced that it had stopped purchasing chicken from Liuhe in August, and said its food was safe to eat.

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