Yum! Brands cuts 1,000 China suppliers

Feb. 27, 2013

After the fallout regarding China's poultry supply chain in which some partners were caught using antibiotics to expedite chickens' growth cycle, Yum! Brands is changing its protocol.

According to Reuters, the company will stop using more than 1,000 suppliers in China as a result of the incident earlier this year. Most of these suppliers are smaller with outdated operations.

Despite what CEO David Novak called a "crisis" during the company's last earnings report, Yum! Brands has not been fined by China's food safety authorities. However, the company's shares have dropped by nearly 13 percent within the past three months primarily because of the China news.

Novak also said the company will increase its marketing and communication efforts in the country to educate consumers of the changes it's making toward a more secure supply chain.

Read more supply chain news.


Topics: Equipment & Supplies , Operations Management


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