For the latest news on U.S.- and Hong Kong-traded Chinese stocks, visit our new Bamboo Works site.
Tag Archives: KFC
Yum’s new leadership change marks the start of a new period of sustained same-store sales growth for KFC in China, overview by former Reuters journalist Doug Young
Bottom line: Foreign-owned meat companies could lose their premium image over Chinese rivals after a Shanghai-based scandal over the summer, as foreign firms remain vulnerable to high scrutiny.
Tyson China expansion on hold
Just yesterday I wrote how foreign food makers generally enjoy a better reputation in China over their domestic rivals, but one glaring exception to that rule is the processed meat industry. The meat processors also used to enjoy a strong reputation, until a major food safety scandal erupted over the summer involving Husi Food, a unit of US meat processor OSI Group. Now the latest headlines are quoting OSI saying 6 of its China workers have been arrested in connection with the scandal. It has also confirmed layoffs of most workers at its Shanghai plant that has been idled since the scandal first broke. Read Full Post…
Two new headlines are casting a spotlight on the very different tastes that China can hold for foreign food firms, including the sweetness they often feel on entering the huge market for the first time. That particular taste is quite strong in the latest announcement from US salt giant Morton, which has just gained major new access to the market through a joint venture.
But the taste can often be far more sour for companies that have been in China for a while, as they experience the many challenges of doing business in the complicated market. That particular taste is in the latest headlines for global fast food leader McDonald’s (NYSE: MCD), which has reportedly hit a speed bump due to a dispute with a local partner as it tries to reignite its growth through a new franchising drive. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 9. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
iPhone Orders To 3 China Telcos Top 1 Mln In First 6 Hours (Chinese article)
China, EU Close To Deal On Telecoms Trade Dispute- Sources (English article)
KFC (NYSE: YUM) China Same-Store Sales Fall 14 Pct In August (Chinese article)
Alibaba-Distributed (NYSE: BABA) Game Mistake Exposes Private Videos (English article)
Evergrande (HKEx: 3333) Invests In E Bon (HKEx: 599) In Solar Drive (Chinese article)
Two news bits involving employee movements are casting a spotlight on major stories that have rippled through the Chinese corporate headlines over these last few months. The first has employees of leading PC maker Lenovo (HKEx: 992) moving into the Chinese corporate headquarters of faded cellphone giant Motorola, indicating the former is confident of closing its landmark purchase of the latter. The second has US-owned meat processor Husi laying off most of the workers at its Shanghai plant, which is reeling from a massive downturn after investigative TV reporters uncovered food safety violations at the facility. Read Full Post…
A few weeks ago I praised Shanghai’s laggard media for uncovering one of the biggest stories of the year, so it seems fitting that this week I take another look at our local media’s return to the spotlight for far less positive reasons.
For those who don’t follow the industry so closely, the rare moment of glory for Shanghai’s media I’m referring to came back in late July. That’s when undercover TV reporters from Shanghai Media Group (SMG) exposed that a range of unsavory practices at Husi Food, a US-owned meat supplier to such major global brands as McDonald’s (NYSE: MCD), KFC (NYSE: YUM) and Starbucks (Nasdaq: SBUX). Read Full Post…
Most of the recent flood of probes against foreign firms have been of the civil variety, resulting in stiff fines for anti-competitive behavior but few or no criminal charges and prison time. But that trend could be changing, with officials at car maker Volkswagen (Frankfurt: VOWG) and a former major meat supplier to McDonald’s (NYSE: MCD) and KFC (NYSE: YUM) being probed or charged with crimes that could end with lengthy prison terms. It’s probably still too early to say if criminal charges against executives at major multinationals will become a trend. But if it does, it could certainly send a new chill into China’s rapidly worsening relationship with western businesses and governments. Read Full Post…
Top executives from software security maker Qihoo 360 (NYSE: QIHU) and struggling game operator The9 (Nasdaq: NCTY) were getting chummy in the blogosphere last week, filling the airwaves with chatter as they prepared to announce a new alliance at the country’s top gaming trade show in Shanghai. Meantime, executives from PC giant Lenovo (HKEx: 992) took time out from their usual tech and marketing chatter to make some low-key criticism against the government, including a microblog post in defense of the beleaguered McDonald’s (NYSE: MCD) as it grapples with one of its worst-ever food safety scandals in China. Read Full Post…
It’s been more than a year since a major food safety scare hit western fast-food operators in China, so we were probably overdue for the latest scandal that is now consuming leading chains KFC (NYSE: YUM) and McDonald’s (NYSE: MCD). Frankly speaking, Chinese consumers are probably so jaded about food safety scandals by now that I don’t know if these latest 2 will really have much long-term impact on either company.
The most disgraceful element this time is the fact that the supplier at the heart of the latest scandal is a foreign-owned firm. Up until now, most of the suppliers who provided tainted food to big foreign supermarkets and restaurant chains were domestic Chinese firms, which usually have lower quality control standards. Thus this latest scandal could really do some damage to the broader image of foreign-owned companies, which are generally seen as more trustworthy than their Chinese peers. Read Full Post…
Nearly 3 months after announcing its first major overhaul since entering China in the 1980s, fast-food giant KFC (NYSE: YUM) is saying it plans to move upscale as part of a drive to reignite its sputtering growth in the market. This kind of repositioning looks quite shrewd, and plays to a more upscale image that overseas brands naturally receive due to their foreign status. KFC actually enjoyed such upscale status when it first came to China in 1987, when its clean restaurants, friendly service and and quality food were considered superior to the fare at many local eateries at that time. But as China’s economy has boomed and income levels have risen, KFC’s image has moved considerably downscale, and the chain is now considered quite average. Read Full Post…
Fast food leaders McDonalds (NYSE: MCD) and KFC (NYSE: YUM) have unveiled major China overhauls in the last few weeks, as each tries to reignite stalling growth in one of their biggest and most profitable markets. Such retrenchments are long overdue, more than 2 decades after each company first came to China and achieved huge success by opening stores that offered not only good food at affordable prices but also friendly service and a comfortable eating environment. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 23. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
