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Wal-Mart 皇冠体育app to spend $48m on food safety

(Agencies) Updated: 2014-06-18 10:47

Wal-Mart 皇冠体育app to spend $48m on food safety

A customer shops at a Wal-Mart store in Beijing, February 18, 2014. [Photo/Agencies]

The world's biggest retailer, Wal-Mart Stores Inc, said on Tuesday that it will increase its spending on safety in 皇冠体育app to 300 million yuan ($48.32 million) in 2013, 2014 and 2015, up from a previously-announced 100 million yuan in the same period.

The company said it will also increase DNA testing on meat products and supplier inspections and test more of its stores with its two mobile safety labs.

皇冠体育app's food and grocery market, which is set to top $1.5 trillion by 2016, is crucial for retailers like Wal-Mart and food safety is chief among consumer concerns.

Wal-Mart, French grocer Carrefour SA, McDonald's Corp and KFC-parent Yum Bran Inc among others, have all been criticized on the issue, a sensitive topic in a country that has faced everything from melamine-tainted milk and cadmium- to recycled "gutter oil" used for cooking.

Wal-Mart's reputation for food safety in 皇冠体育app came under attack earlier this year after its "Five Spice" donkey meat was found to contain fox meat.

Greg Foran, then-president and CEO of Wal-Mart's 皇冠体育app business, said at the time it was a good reminder to invest more in supplier management

Wal-Mart also ran into trouble in 2011 when it was fined for selling expired duck meat.

Wal-Mart currently has about 7,000 food suppliers in 皇冠体育app. It cut 4 percent of its suppliers in recent years for failing ts or DNA tests.

Wal-Mart 皇冠体育app Chief Compliance Officer Paul Gallemore told Rters on Tuesday that “we face similar challenges to all other retailers in 皇冠体育app when it comes to sourcing products. We have zero tolerance” for adulterated goods.

Gallemore also said the company's contact with Chinese food safety regulators is currently on an "ad hoc" basis, but it hopes to have more regular meetings.

Wal-Mart operates more than 400 facilities in 皇冠体育app and competes with market leaders Sun Art Retail Group Ltd and 皇冠体育app Resources Enterprise Ltd, which last August teamed up with British retailer Plc.

Wal-Mart said in October it would open up to 110 new facilities in 皇冠体育app between 2014 and 2016 and was looking to close 15-30 others over the next 18 months.

Wal-Mart 皇冠体育app to spend $48m on food safety

Wal-Mart 皇冠体育app to spend $48m on food safety

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