Westlife FoodWorld, which runs McDonald’s restaurants in west and south India, said on Tuesday the Food Safety and Standards Authority of India (FSSAI) has verified that the fast food chain uses real cheese in its products.
The franchisee has received a verification letter from the authority on March 1 stating that its products do not use cheese analogues or substitutes, it said.
Shares of Westlife FoodWorld rose as much as 8% intra-day following the announcement on Tuesday, finally settling at Rs 793.35 apiece at the end of trade, up 7.7% from the previous day’s close.
Saurabh Kalra, MD, McDonald’s India (West & South), said, “The clean chit we have received from FSSAI, India’s apex food safety standards regulator affirms that our products contain 100% real cheese, sourced from globally renowned suppliers.”
The company has also received results of tests conducted by a National Accreditation Board for Testing and Calibration Laboratories-certified lab on Monday, confirming the use of real cheese in its products.
The FSSAI verification has come amid a controversy over the use of cheese at one of the company’s outlets in Ahmednagar in Maharashtra. This had prompted the state Food & Drugs Administration to suspend the licence of the outlet following inspection. The suspension was later revoked, though the regulator had widened its probe to cover more food retail brands and outlets.
The FSSAI approval will mean that the company can now go back to using the word “cheese” in its menu items, which was dropped amid the controversy.
“The FSSAI is the supreme body as far as food regulation, implementation and interpretation is concerned. What it says is the final word, ” Kalra said. As far as the Maharashtra FDA is concerned, he added that the company is “in dialogue with them regarding clarifications” on the matter.
Westlife Foodworld is McDonald’s biggest India franchisee. It runs 380 restaurants across 62 cities in Telangana, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Kerala, Chhattisgarh, Andhra Pradesh, Goa, Madhya Pradesh and Puducherry.
Kalra said the company is assessing the business impact of the cheese controversy in Maharashtra, among its largest markets, though consumers had begun to question the brand. “When there is an issue like this, trust does take a beating. We are taking steps to address these concerns at every level. We have always maintained a steadfast commitment to food quality,” he added.
