KFC Dumps Nestle

Posted by Bill Belew on October 23rd, 2007 in Doing Business in China | No Comments

Kentucky Fried Chicken is committed to quality...so much so, they alter the genes of their chickens so they have no beaks or feet and they tube feed them till they get real fat and….and…

Well…KFC thinks Mengniu of Inner Mongolia can do a better job of providing dairy products than Nestle can.

KFC has some 2000-odd stores in China.

From next year, Mengniu will provide milk for the colonel.

KFC is committed to localizing in China says KFC brand general manager.

Nestle had been KFC's choice for the past twenty years….the entire time KFC has been in China…20 years this year.

90% of KFC's products are procured in China.

Mengniu is just eight years old. In the first half of this year, sales reached Y10 billion.

Mengniu signed a deal in June with Starbucks…replacing Nestle.

Cheaper? Gotta be.

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