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Food safety scandal spreads to foreign suppliers

China’s current food safety scandal is the first involving foreign food brands, Bloomberg reported. Products from global food chains, including McDonald’s (MCD.NYSE) and Yum! Brands’ (YUM.NYSE) KFC and Pizza Hut, were found to have been made with spoiled meat sourced from a Chinese unit of Illinois-based OSI Group. While such scares have exploded frequently in China since toxic milk sickened 300,000 infants six years ago, those have centered on local suppliers. The scandals initially benefitted foreign food brands, which were seen as safer, but now consumers are increasingly suspicious of all food producers in China.

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