walmart-donkey-meat.jpg
American retail giant Wal-Mart said it will withdraw donkey meat from its outlets in China after Chinese inspectors found traces of fox DNA in the meat.
The world's largest retailer said aside from recalling donkey meat sold at some outlets in China, it will also cooperate in an ongoing investigation on its Chinese supplier. The discovery of fox DNA from the donkey meat sold in some Wal-Mart outlets in China was made by the Shandong Food and Drug Administration.
On its official Weibo account, Wal-Mart said it will pay back customers who had purchased the allegedly tainted "Five Spice" donkey meat and said it will also conduct its own investigation on the controversy. Donkey meat is a popular snack in some parts of the country and experts said the latest controversy could shake the image of Wal-Mart in the world's largest food market.
In 2011, at least 2.5 million donkeys were slaughtered in China to address Chinese consumers' demand for donkey meat. Chinese customers have long become conscious on the quality and cleanliness of the food sold in China. In fact, several companies have lost market shares in China following issues on tainted products.
Wal-Mart, which plans to open 110 new stores in China in the next few years, will have to do a lot of image rebuilding following the DNA controversy, said one expert. The issue could also hit on Wal-Mart's brand in the country and shoppers may soon start losing faith in the retailer's products sold in China. Gaining the trust of Chinese consumers is very vital for Western retailers if they want to thrive in China's U.S. $1 trillion food and grocery market.
Wal-Mart China President and Chief Executive Officer Greg Foran has issued an apology immediately after the scandal broke out. Foran said Wal-Mart considers the issue as a wakeup call to further increase investment in supplier management.
Food safety scandals can cause the downfall of companies in China. To recall, Yum's chicken scandal also tainted the company's image, affecting its KFC and Pizza Hut brands in the country.
