KFC in China dumps Nestle for local dairy producer


BEIJING — U.S. fast food giant Kentucky Fried Chicken (KFC) has signed a dairy product agreement with China’s Mengniu Dairy, ending a two-decade local tie-up with Nestle, state media said Tuesday.

Milk and other dairy products made by Mengniu will be sold at KFC’s 2,000-odd outlets in China from next year, the China Daily reported, citing the agreement signed on Monday. This is not the first time that Mengniu Dairy, based in northern China’s Inner Mongolia region, has replaced Nestle as a supplier for multinational food companies in China. In June, it took the place of Nestle as liquid milk supplier for American coffee chain Starbucks, the China Daily said.