Beef in French Fries at McDonald's

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McDonald's Tries to Diffuse Meaty Fries Row

By Martin Hickman and Brad Dorfman

 

LONDON/CHICAGO (Reuters) - Global fast food giant McDonald's Corp.

(NYSE:MCD - news) continued its efforts on Thursday to defuse a dispute

over the use of beef extract in its french fries that has angered

vegetarians around the world and exposed it to legal action.

 

In Britain, where vegetarians are a sizable minority group, McDonald's

issued a statement saying its french fries there contained no beef

flavoring, unlike McDonald's fries in the United States.

 

A McDonald's UK spokeswoman said the company wanted to reassure customers

that its fries were indeed vegetarian.

 

The issue hit the headlines this month after Harish Bharti, a native of

India and a Hindu, filed a lawsuit in the United States accusing

McDonald's of ``secretly'' lacing its french fries with beef extract.

 

The news sparked demonstrations in India, where the majority Hindus regard

the cow as sacred. A slogan-shouting crowd of more than 500 attacked a

McDonald's outlet on the outskirts of Bombay, smashing equipment and

property, and local food officials pledged to test the fries.

 

McDonald's was forced to state that in India that its fries did not

contain any beef.

 

APOLOGY FOR CONFUSION

 

On its U.S. Web site, McDonald's said it apologized if consumers felt they

had not been given complete information about the way its fries were

cooked.

 

Giving details of its cooking, it confirmed that a ``natural flavoring''

added to fries before they were sent to U.S. restaurants was a ``beef

flavoring.''

 

``Because it is our policy to communicate to customers, we regret if

customers felt that the information we provided was not complete enough to

meet their needs,'' the company said.

 

``If there was confusion, we apologize,'' McDonald's said.

 

Bharti said the statement on the Web site did not address the issues in

the lawsuit. ``I think it's a good start,'' he told Reuters on Thursday.

``But until it is very sincere and clear, it is not going to have any

impact on the outraged consumers.''

 

U.S. analysts who follow the company, which has sales of $40 billion a

year, said they did not think the french fry issue would have a financial

impact on the company.

 

``I don't think its a big deal,'' said Ann Gurkin, an analyst who follows

the company for Davenport & Co. As for the note on the Web site, she said,

``It would have been nice if they said it more publicly.''

 

McDonald's shares were up 17 cents at $30.41 at midday Thursday on the New

York Stock Exchange (news - web sites). The stock has underperformed the

Standard & Poor's 500 index by more than 9 percent since the beginning of

the year.

 

In 1990 McDonald's announced to great fanfare that it was switching the

cooking of its fries to vegetable oil for nutritional reasons.

 

BEEF FLAVORING USED

 

But as the preparation of food under the group's famous Golden Arches came

under scrutiny recently, McDonald's acted to calm the dispute.

 

Tucked away in the ``food facts'' section of the U.S. part of its Web site

was a statement from McDonald's apologizing for the confusion.

 

The company confirmed that it added beef flavoring to its fries in the

United States.

 

``A small amount of beef flavoring is added during potato processing -- at

the plant,'' it said. ``It is during the par-frying process at the plant

that the natural flavoring is used.''

 

The company added, ``Our french fries are cooked in vegetable oil at our

restaurants.''

 

The information has been on the Web site for about two weeks, since the

lawsuit raised the issue, Walt Riker, a spokesman at McDonald's corporate

headquarters in Oak Brook, Illinois, said.

 

The company also disputes the contention that it secretly adds beef

flavoring to its french fries.

 

``We absolutely disagree with the conclusions of this group associated

with the litigation,'' Riker said.

 

McDonald's said on the Web site that the frying process varied across the

world to take account of ``cultural or religious dietary considerations.''

 

In ``predominantly Muslim countries -- as in Southeast Asia, the Middle

East and Africa,'' McDonald's said it conforms to Halal standards, meaning

the fries contain no beef or pork flavorings.

 

``In India, where vegetarian concerns are paramount, no beef or pork

flavorings are used in our vegetarian menu items,'' the company said.

 

 

 

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