McDonald's Japan apologises over safety woes

McDonald's has apologised after a string of incidents in Japan where objects - from a human tooth to pieces of vinyl and plastic - were found in its products, sparking fresh concerns about a worldwide sales decline.

The latest food-safety scandal at McDonald's second-biggest market adds to the troubles the fast-food chain has faced over the past six months, including a meat safety scare linked to its China-based supplier and restrictions on sales of its French fries because of a potato shortage.

Cargill, the US commodities trader, is also investigating with McDonald's Japan a customer complaint that a tiny piece of blue vinyl was found inside a chicken nugget that was purchased on Saturday in northern Japan.

While the chicken nuggets were supplied by a Cargill unit in Thailand, it remained unclear whether the vinyl came from its facility. In a statement, Cargill said samples of plastics used in its facility did not match those found in Japan.

"We are now taking every action we can in collaboration with McDonald's to determine the facts. Based on the outcome of this investigation, we will make any changes required to improve processes," it said.

McDonald's Japan has been supplying chicken nuggets from three plants in Thailand after its China-based supplier was caught relabelling out-of-date chicken and breaching other food safety rules.

Among other complaints, McDonald's Japan said a customer in Osaka, western Japan, found a human tooth inside French fries that were bought in late August. An internal investigation later found that the tooth had not been fried and concluded that it was unlikely that the object was inserted during the manufacturing process or by sales staff.

"Unfortunately, we don't know how the tooth got mixed in," Hidehito Hishinuma, an executive at McDonald's Japan told reporters on Wednesday, following a ritual bow of contrition.

Last month, a young child suffered a minor cut inside the mouth from hard plastic that was inside a chocolate sundae, which was later attributed to an error in assembling the machine. Other reported cases included a piece of bracelet or necklace that was found inside a pancake in September and a piece of plastic inside a muffin purchased at a McDonald's store in the southern island of Japan.

The exact causes for many of the incidents remained unclear, but company executives promised to implement steps to prevent objects from being mixed inside its products.

Shares in McDonald's Japan have fallen 6.5 per cent since Christmas as investors worried about a further decline in sales fuelled by food safety concerns. The company, which is half owned by the US fast-food group, is expecting its first annual loss in 11 years, totalling Y17bn ($143m).

Even before the food scandal erupted in Asia, the world's largest fast-food chain has suffered from declining sales in the US amid changing consumer tastes. In November, same-store sales in the US fell 4.6 per cent, while sales declined 2 per cent in Europe and 4 per cent in Asia-Pacific and the Middle East.

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