Yum and McDonald's profits drop after supplier scandal

7. Fonterra

Chinese consumers' passion for New Zealand's dairy products suffered a major hiccup in August last year. The loss in confidence followed a recall of tons of dairy powder products sold by New Zealand-based dairy producer Fonterra.

Tests had shown some of the products contained bacteria that can cause botulism. The contaminated whey products had been sold to third parties that use them to produce infant formula and sports drinks.

About 1,000 tons of consumer products were affected by the recall in seven countries. Four Chinese manufacturers; Dumex Baby Food Company, two subsidiaries of beverage manufacturer Wahaha Group, and Shanghai Sugar, Tobacco and Alcohol; had used the potentially contaminated products. Coca-Cola's Chinese subsidiary was also affected. China's food safety authorities ordered importers to recall any potentially infected products and blocked imports of all milk powder products from New Zealand.

People visit the stand of Fonterra Cooperative Group Ltd during a dairy products exhibition in Beijing, Sept 12, 2013.[Photo/IC]