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McDonald's Expresses 'Regret' in Meaty Fries Row

 

May 24, 2001 05:12 PM ET

 

By Martin Hickman and Brad Dorfman

 

LONDON/CHICAGO (Reuters) - Global fast food giant

McDonald's Corp. is apologizing in 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.

 

But the world's largest fast food chain said on

Thursday the apology does not mean it was

admitting to claims filed in a lawsuit alleging

the company misled millions of customers by

" secretly " adding the extract to its fries.

 

On its U.S. Web site, McDonald's said it was

sorry 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.

 

The statement has been on the Web site for about

two weeks, a McDonald's spokesman said, though a

person looking at the McDonald's home page

(http:/www.mcdonalds.com) might have trouble

finding the message.

 

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 its

fries did not contain any beef.

 

APOLOGY FOR CONFUSION

 

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 when

reached in his Seattle office. " 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 it's 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 closed 52 cents higher at

$30.76 on Thursday on the New York Stock

Exchange. The stock has underperformed the

Standard & Poor's 500 index by more than 9

percent since the beginning of the year.

 

BEEF FLAVORING USED

 

In 1990 McDonald's announced to great fanfare

that it was switching the cooking of its fries to

vegetable oil for nutritional reasons.

 

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.

 

The company added, " Our french fries are cooked

in vegetable oil at our restaurants. "

 

But the company disputes the contention that it

adds the flavoring " secretly, " Walt Riker, a

spokesman at McDonald's corporate headquarters in

Oak Brook, Illinois, said.

 

" 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 varies around 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.

 

In Britain, where vegetarians are a sizable

minority group, McDonald's issued a statement on

Thursday 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.

 

*****

 

McDookie's site:

 

http://www.mcdonalds.com/countries/usa/food/foodfacts/index.html

 

 

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