Marketing Ethics–KFC Struggles in China with its “45-day chicken” Food Safety Scare

KFC is the biggest foreign restaurant chain in China in recent years. Now it continues to expand by planning to open 700 new stores next years. However, in late November 23, 2012, Chinese Media accused one of the suppliers to KFC, Su Hai Group, of pumping its chickens toxic chemicals in order to accelerate their growth to 45 days.  An owner of a chicken farm reported the he received more than 10 chemicals from the Su Hai Groups and used it to feed all the chicken until it grows big enough for slaughter, but actually it will take more than 8 months for a chicken to grow big if it is fed with grain. Therefore, the chicken is toxic and unhealthy.

 

After this news was announced, despite KFC’s denial of this accusation, there is a massive social response against fast-growing chicken. Below is a survey conducted by China’s three leading websites.

Even though most people are still questioning the reliability of this shocking news, there were actually many photos and posts showing worms in chicken meat and four legs fast-growing chickens in the farms before. Thus, this big scandal attracts people’s attention and they all begin to worry about the safety of their food. In my opinion, KFC already occupies the premium market segment and is earning an enormous profit in China, it is ridiculous for them to destroy their long-building reputation just to save some costs from feeding the chickens. This unethical practice of selling fast-growing chicken eventually led to a drop of 4% in sales and a 10% drop in share price. Overall, there might some unknown factors behind the whole KFC China chain, but this is an alarm for the KFC U.S. chain to take action and stop selling toxic chickens.

Related Readings:

http://english.caixin.com/2012-12-10/100470746.html

http://www.chinadaily.com.cn/china/2012-11/27/content_15963075.htm

 

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