Wal-Mart reopens stores in China after labelling issue

by Editor fleischwirtschaft.com
Friday, October 28, 2011

Wal-Mart Stores Inc. reopened 13 of its stores in the south western Chinese city Chongqing after they were ordered closed for 15 days over the mislabelling of tons of regular pork as "organic".

City authorities also arrested two employees and fined the company US$421,000 on charges of passing off regular pork as higher-priced organic meat earlier this month.

Wal-Mart set up supervisory teams at the stores during the two-week closure to improve management and product labelling while local authorities conducted twice-daily inspections.

The penalties seemed harsh and may be politically motivated as Chongqing officials try to position themselves as consumer advocates ahead of national leadership changes beginning next year.

Earlier this month  the president of Walmart China, Ed Chan stepped down and his post was to be temporarily filled by Walmart Asia president Scott Price.
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