Nestlé Combats China Food Scandals

The Swiss food giant opens a $10.2 million R&D center in Beijing, as multinationals take steps to assure Chinese consumers their products are safe
Cartons of milk are on display at a grocery store in Beijing on October 15, 2008. China ordered all dairy products more than a month old to be pulled from shelves nationwide in a step to end a scandal over contaminated milk. FREDERIC J. BROWN/AFP/Getty Images

As the food safety crisis in China escalates—the latest news reports suggest that fish, pork, and chicken, along with milk and eggs, could be contaminated with the industrial chemical melamine, which has already sickened tens of thousands and killed at least four (BusinessWeek.com, 9/26/08)—multinationals are beginning to realize that simple reassurances are no longer sufficient. Indeed, in an effort to calm ever more skittish consumers, companies are now starting to trumpet what they call major measures aimed at ensuring food safety.

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