Wal-Mart Stores has confirmed it removed a number of products from its shelves in China following accusations it was selling “sub-standard” food in the country.
According to the Financial Times, state media reports revealed Wal-Mart was asked to remove a number of products by The Animal Husbandry and Foodstuff Bureau in the city of Dazhou, which accused the retailer of selling pork sourced from “diseased pigs”.
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The organisation, based just outside Chongqing, reportedly asked Wal-Mart’s local branch to stop selling the pork ribs in January, the publication noted. However, the news was only made public this week after the Government asked the bureau to provide the media with “classic case studies” during China’s National Food Safety Week, the FT said.
A separate local report also claimed a Wal-Mart store in Beijing was found to be selling sesame oil with carcinogenic ingredients, and fresh squid with “too much heavy metal”, the FT reported.
Wal-Mart today (14 June) just-food it had removed the frozen pork product from its shelves in Dazhou following the accusations and that it has since discontinued supply of the product. The retailer made no mention of the other two products.
“Since January, we continue to be in close contact with the Dazhou Government on such matters and are committed to providing our customers with quality products at highly affordable prices,” Wal-Mart said.
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By GlobalDataHowever, the revelations may further Wal-Mart’s business in China, where in the last 12 months it has became embroiled in a labelling scandal that led to stores being closed and a police investigation.
Last autumn, it was claimed conventional pork in Wal-Mart outlets was labelled as organic, which led to outlets being closed, staff arrested and a police investigation.
There have also been a series of management changes within Wal-Mart’s Chinese operations in the last year.
In February, Wal-Mart appointed long-time Woolworths Ltd executive Greg Foran to the role of president and CEO of its Chinese unit. Ed Chan, the previous president and CEO of Wal-Mart China, resigned in October for “personal reasons”.
Last June, Shawn Gray, vice president of Wal-Mart’s hypermarket operations, also handed in his notice. A month earlier, COO Rob Cissell and CFO Roland Lawrence also decided to leave the business.
