Case Analysis of Crisis Management of KFC Sudan Red Incident

Reflections on the Sudan Red Incident in KFC-

The status of KFC and McDonald's in China's catering industry can hardly be shaken by enterprises in China. Market recognition and advanced operation mode make it occupy a high market share in China. But now, the Sudan red problem is coming. Although it will not bring the demise of KFC, it is worth considering that the security crisis may give way to industry giants. In China, food safety has always been highly valued by the public, and so has the role of the media. It may bring disaster to some companies in China food industry in the future. Therefore, at present, Chinese enterprises should attach great importance to food safety and product safety while strengthening technology and production scale, and research and development can not be relaxed in order to achieve long-term stable development.

The whole story of KFC Sudan Red Incident

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& ltbr & gt February 2005 18

& ltbr & gt Sudan red was found in British food, and more than 500 kinds of food were taken off the shelves.

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& ltbr & gt February 23, 2005

& ltbr & gt The General Administration of Quality Supervision, Inspection and Quarantine of China issued an urgent notice, focusing on prosecuting Sudan Red 1 in imported products to prevent it from entering domestic circulation channels. Delicious! Brands, a subsidiary of KFC, immediately asked suppliers to test the relevant seasonings and provide written confirmation.

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& ltbr & gt February 25, 2005

& ltbr & gt delicious! The supplier Guangdong Zhongshan Jikuaifu Food Company sent a written reply, confirming that its products do not contain Sudan red.

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& ltbr & gt March 4, 2005

& ltbr & gt The relevant authorities in Beijing detected "Sudan Red 1" from Heinz Chili sauce and confirmed that Sudan Red came from Tian Yang, Guangzhou. Delicious! Once again, all suppliers are required to continue the investigation of "Sudan Red 1" and shift the focus to domestic raw materials.

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& ltbr & gt 15 March 05

& ltbr & gt A trace of Sudan red (No.:1) was found in the seasoning of roast wings of KFC in New Orleans and roast chicken legs in New Orleans.

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& ltbr & gt1March 5, 6

& ltbr & gt delicious! All KFC restaurants in China are required to stop selling roasted wings and chicken legs in New Orleans. At the same time, start the internal process, properly handle and destroy all remaining spices, and prevent the problem spices from flowing back to the consumption channel. China KFC issued the Statement on Sudan Red (1) through the media and restaurants to apologize to the public.

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& ltbr & gt 17 March 05

& ltbr & gt Be the quality control personnel of Yum! The brand further traced Sudan red in Jikuaifu factory. They found in the production records that the spicy powder containing Sudan red provided by Red Materials (Kunshan) Co., Ltd. was also used in some seasonings of KFC's spicy chicken wings, spicy chicken leg hamburgers and spicy chicken rice flowers before June 65438+1October/0/2, 2005. KFC immediately informed all restaurants to stop using a small amount of leftover Kikuaifu seasoning and replace it with the delicious same seasoning.

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& ltbr & gt 17 March 05

& ltbr & gt Before Yum! Brands replaced the seasonings of the above three products, and the Beijing Import and Export Inspection and Quarantine Bureau sampled the problematic seasonings in the company's Wan Hui restaurant.

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& LTBR & gt The inspection report in Beijing on March, 2005 18 confirmed that the chrysanthemum brain seasoning contained Sudan red. Although our company has passed professional testing to ensure that the new seasoning from Mei does not contain Sudan red, in order to ensure the safety of citizens, Beijing Food Safety Coordination Office requires our company to send the new seasoning to the bureau for re-testing, and we must immediately stop selling three products before the bureau proves that it does not contain Sudan red. In order to cooperate with the instructions of Beijing Food Safety Coordination Office, Beijing KFC had to suspend the sales of three products.

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& ltbr & gt March 22, 2005

& ltbr & gt The new seasoning was confirmed by Beijing Food Safety Office to be free of Sudan red, and then Beijing resumed the sales of three products: spicy chicken wings, spicy chicken leg burgers and fried chicken rice flowers.

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& ltbr & gt March 23, 2005

& ltbr & gt The New Orleans seasoning without Sudan red has been tested by the national certification and inspection agency, and the product will be sold nationwide within three days.

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& ltbr & gt March 28, 2005

& ltbr & gt KFC held a press conference in the national 16 city, announcing that hundreds of related products of KFC had been tested by professional institutions, and all products were confirmed to be free of Sudan red. The company found that all the problems came from Red Materials (Kunshan) Co., Ltd., a supplier of Zhongshan Kuaifu Company. Red has provided Ji Kuaifu with two batches of Chili powder containing Sudan red. Some of these two batches of Chili powder were used in KFC's New Orleans and spicy products. At the meeting, KFC announced three food safety measures to prevent similar incidents in the future.

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& ltbr & gt April 6, 2005

& ltbr & gt According to CCTV's Focus Interview, Sudan Red No.1 in all KFC seasonings can be traced back to Guangdong Tianyang Company. The company illegally forged industrial raw materials into edible colorants and sold them to Henan Zhumadian Yuxiang Condiment Co., Ltd. to process Chili powder; Then it was packaged by Anhui Yimen Gante Co., Ltd. and sold to Red Materials (Kunshan) Co., Ltd., and finally sold to KFC supplier Jikuaifu Company, thus mixing KFC seasoning. It can be seen that there are four companies between Tianyang Company and KFC.

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& ltbr & gt Highlights of KFC Sudan Red Incident

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& ltbr & gt 1. What the hell happened?

& ltbr & gt Please refer to the story of the Sudan Red incident in KFC.

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& ltbr & gt2. Why did KFC discover the problem of its products nearly a month after it discovered Sudan Red abroad?

& ltbr & gt At present, there are 22 kinds of food additives approved for use in China, about 15 13, all of which are illegal. Therefore, there are countless substances that may be used as illegal additives in Qian Qian. Sudan red was little known before, and all domestic enterprises have not tested it. This country doesn't even have a standard to test it. On February 23rd, we asked the supplier to conduct self-inspection and get written confirmation, Sudan Red was not included. On March 4th, the supplier was asked to check again and start self-inspection. China's ability to detect Sudan red is limited, so it takes a long time.

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& ltbr & gt3. Has KFC concealed the truth?

& ltbr & gt No, KFC immediately stopped selling two problematic products on March 16 after discovering that Sudan red was mixed into our seasoning on March 15, and announced it to consumers.

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& ltbr & gt Integrity is the operating principle of Yum! Being responsible for consumers is the basic performance of corporate integrity. After discovering the problem of Sudan Red, Yum! First of all, consider stopping selling problem products, protecting consumers' interests, and abiding by China food safety regulations and consumers' right to know. Although such a result will have a temporary impact on the enterprise, we believe that the vast number of consumers support Yum's approach and agree with the principle of good faith management.

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& ltbr & gt Then why are the other three products found in Beijing?

& ltbr & gt3 After the problem was discovered in March 15, we immediately tracked down whether there were other seasonings that also had problems. On March 17, we found that a batch of seasonings of the other three products produced in February 2004 also had problems. Although this batch of spices is only a small part of the same seasoning, we will transfer them all at once. It happened that the Beijing Food Office discovered this batch of spices at the same time. In particular, it needs to be clarified that some media reported that KFC guaranteed that other foods did not contain Sudan red in its statement on March 16. This report is incorrect. When we stopped selling for the first time, the known "red-related" products could not be confirmed. Whether all other products are "red" or not, we promise to trace them to the end.

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& ltbr & gt5. Are all products now sure that there is no Sudan Red?

& ltbr & gt Yes, after the incident, we conducted a comprehensive test on hundreds of projects. The results confirmed that all products did not contain Sudan red. Since March 23, all products that have been discontinued have been restored. Please feel free to use.

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& ltbr & gt6. Will anyone get sick or cause cancer?

& ltbr & gt absolutely not. The content of Sudan red in food is extremely low, which has little impact on public health. Even so, we should exclude it from food.

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& ltbr & gt According to the announcement of the Ministry of Health of China, Sudan Red may cause cancer in animals, but there is no evidence that it is harmful to human body. In animal experiments, the amount of Sudan red given to animals by scientists is 654.38+ 10,000-654.38+10,000 times that of Sudan red in food. Therefore, it is impossible for people to eat a small amount of Sudan red to affect their health.

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& ltbr & gt British experts said that the Sudan red content found in food is extremely low, and its impact is only equivalent to a person smoking for a lifetime. A newspaper in China said that a cigarette is more harmful than hundreds of bottles of Chili sauce containing Sudan red.

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& ltbr & gt Dr Scott Phillips, an authoritative toxicologist in the United States, believes that due to the extremely low content of Sudan red in food, the average consumer needs to eat 54,000 chicken wings every day, and it will take a lifetime for some of them to have an impact on the body. He said: According to the judgment of the International Agency for Research on Cancer, Sudan Red will not cause cancer to human body.

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& ltbr & gt7. Why do large enterprises like KFC use fake food additives from roadside enterprises like Tian Yang?

& ltbr & gt It is impossible for us to purchase goods from an enterprise like Tianyang ourselves. After the incident, we learned that it was a supplier four floors away who bought illegal food additives from Tianyang. Our current global regulations only monitor the management mechanism of direct suppliers for their own supply systems. In the future, we will strive to reduce supply links and strengthen the access system for each supplier. We also call on the government to strengthen the access and annual inspection system of the food industry. Prevent illegal manufacturers from mixing in at the root.

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& ltbr & gt8. What improvements will KFC make in the future?

& ltbr & gt In view of the fact that there are great food safety hazards in China's food industry at present. We decided to take more preventive measures for food safety in China, exceeding the high standards of any enterprise and any country. We are carrying out the following work:

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& ltbr & gt invests no less than 2 million yuan to establish a modern food safety testing and research center to conduct safety sampling inspection on all products and raw materials. Ensure that all KFC products meet food quality and safety standards with their own ability;

& ltbr & gt 1. requires all major suppliers to increase personnel, acquire necessary testing equipment, and carry out necessary food safety pumping for all incoming materials.

& ltbr & gt inspection to improve the testing ability of suppliers;

& ltbr & gt2. Require suppliers to be more strict in selecting upstream suppliers, so as to prevent from not having a strong sense of abiding by the law and failing to adhere to food safety supply.

& ltbr & gt merchants are mixed into the supply chain to strengthen the control of upstream suppliers.

& ltbr & gt In addition, we will actively expand cooperation with the government and work with the government to improve the food safety management mechanism in China.

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& ltbr & gt will not consider changing the previous policy of actively shifting imported raw materials to domestic procurement for the time being, but will be more cautious.

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& ltbr & gt9. Why didn't KFC take these measures earlier?

& ltbr & gt Modern society has entered a system of interdependence and high division of labor. Under such a system, food safety must rely on the government's legislation, law enforcement, and the initiative of every enterprise to abide by the law. No matter how powerful Yum is, it is difficult to replace the self-discipline function of all governments and suppliers. Moreover, we use tens of thousands of raw materials, involving various fields, and there are countless biological, chemical and physical substances that are not allowed to be used or invaded by various laws, even unknown. It is impossible to rely on one enterprise to ensure that all the supply chains in the upstream are free from problems, just like Don Quixote challenges the windmill. Because of this, domestic and foreign catering enterprises hand over the responsibility to their own suppliers according to the contract, requiring suppliers to take targeted preventive measures according to their own professional fields. Therefore, the construction of our own food safety testing and research center is really a pioneering work in China and even in the world.

& ltbr & gt It is worth noting that in this incident, many well-known brands at home and abroad, including our competitors, have discovered Sudan Red. It can be seen that it is easy to put an end to the invasion of illegal substances in today's society. Although it is so difficult to completely eliminate it, we will not give up. We will take this as a challenge and work with the government, academia, suppliers and other parties to study and explore better methods to establish more defense lines and customs for consumers.

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& ltbr & gt 10. Is there any guarantee that similar problems will not happen in the future?

& ltbr & gt As mentioned above, no one can guarantee that there will never be a problem, but we will do everything possible to reduce the probability of a problem to near zero.

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& ltbr & gt 1 1. Will KFC hold the upstream manufacturers accountable?

& ltbr & gt The direct supplier of this problem is Kikuaifu, a multinational company that has extensive business contacts with Yum! Brand for many years. However, in this incident, Ji Kuaifu failed to fulfill his duties and has obviously violated the contract, causing great losses to our company. We will negotiate with Kikuaifu for compensation. At the same time, we are also comprehensively reviewing and adjusting the supply relationship with Kikuaifu.

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& ltbr & gt 12. What did KFC say to consumers?

& ltbr & gt We understand the psychological anxiety caused by this incident and deeply regret it. But at the same time, I also hope that consumers can understand scientifically that Sudan red contains very little toxicity, and a small amount of contact will not cause harm to human body.

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& ltbr & gt In this incident, KFC was unfortunately implicated by illegal manufacturers across multiple layers and suffered the biggest blow since it entered China. In this regard, I hope consumers can understand.

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& ltbr & gt If the consumer insists on claiming compensation, we suggest that the consumer consult a lawyer and follow the procedures prescribed by law. KFC will never evade its legal responsibility.

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& ltbr & gt 13. Why doesn't KFC take the initiative to invoice?

& ltbr & gt 1. KFC respects consumer rights. If consumers ask for invoices, we will definitely issue them;

& ltbr & gt2. Most consumers have no demand for this kind of small invoice, so they will throw it away once they take it, but it needs to be occupied when invoicing.

& ltbr & gt For a certain period of time, it is inconvenient for fast food restaurant customers who value speed.

& ltbr & gt3. The above-mentioned behavior of KFC complies with the laws of China. At the same time, all taxes of KFC are paid according to the actual turnover, with invoices.

The quantity of & ltbr & gt is irrelevant. Over the years, KFC has an excellent tax credit and has been commended and rewarded by the state and local governments many times.