China has had a few brushes with fake meat over the years. From fake beef products made from pork meat to faux lamb strips made from rat meat, it seems that the most populous country in the world has seen it all. But has it?
While the adage "when in Rome, do as the Romans do" seems like a good idea most of the time, Walmart would do well not to mimic unscrupulous faux meat distributors in China regardless of whether the incident was intentional or not. Amidst international criticism, a number of Walmart outlets in China have recalled the so-called "five spice" meats that have been shown to contain, among other things, donkey meat.
Aside from recalling the tainted products, the company will reimburse affected customers who unwittingly purchased the donkey meat. The company is also currently cooperating with Chinese officials to get to the bottom of the incident. Aside from donkey meat, some of the tainted products have also been shown to contain fox meat, according to the Shandong Food and Drug Administration. Both Walmart and the Chinese officials are now investigating the Chinese supplier who supplied to meat to the affected Walmart outlets.
According to the preliminary investigations, some tainted meat products were supplied by a company called Dezhou Fujude Food Co. Ltd in Jinan. The said company supplied meat that tested positive for donkey DNA. Walmart is also considering taking legal action against erring suppliers responsible for the incident.
Walmart has a number of long term plans for China and the recent incident could derail their plans if not dealt with correctly. Considering that China has the largest population in the world, this also means that Walmart stands to lose a giant-sized market if they don't play their cards right. After all, Walmart is planning to open around 110 new stores in the country in the near future to add to the company's 390 or so operational stores.
While the incident may seem shocking for the rest of the world, other companies such as Yum Brands Inc. have also come across supply chain issues in the country. Back in 2013, Yum Brands Inc. encountered a problem concerning a shipment of chicken that contained high levels of antibiotics, which proved to be a PR nightmare for the Yum Brands Inc.-owned fast food chain KFC.