Posts tagged ‘retailer ikea’

27/02/2013

* IKEA Meatball Scandal in China: It’s Not What You Think

WSJ: “At the risk of beating a dead horse, China Real Time feels compelled to update readers on the latest flare-up in the global meat contamination scandal from the Chinese point of view.

According to a report in the state-run China Daily on Wednesday, the Swedish meatballs that furniture retailer IKEA sells in China have stirred controversy– not because they were found to contain equine DNA like some of the company’s meatballs in Europe, but because it turns out they’re made in China.

Agence France-Presse/Getty Images

This picture taken on Feb. 25, 2013 shows meatballs at IKEA department store in Brno, the Czech Republic.

“I thought the meatballs were imported from Sweden,” the China Daily quoted Jiang Tong, an IT worker in Beijing, as saying. “I don’t think I will order such meatballs in the future.”

IKEA’s spokeswoman did not respond to requests for comment. China Daily said the meatballs at IKEA’s China outlets do not contain horsemeat, as the company gets its meatballs, made with beef and pork, from a manufacturer based in China’s coastal Fujian province.

News of horsemeat turning up in beef products sourced in Europe has spread across the globe in recent weeks, hurting the reputations of some of Europe’s biggest food producers. The Wall Street Journal reported on Monday that IKEA has removed meatballs from many of its cafeterias after traces of horsemeat were found in a batch in the Czech Republic.”

via IKEA Meatball Scandal in China: It’s Not What You Think – China Real Time Report – WSJ.

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24/11/2012

* No meatballs’ as IKEA hits hurdles in India

India cannot make up its mind, it seems, whether to welcome foreign retailers or not.

Hindustan Times: “Swedish retailer IKEA said Friday it was reviewing sweeping curbs imposed on what it can sell at its planned new stores in India that will reportedly prevent it offering its famed meatballs. India’s foreign investment panel has rejected 15 of IKEA’s 30 product lines, a report said on

Friday, underscoring the regulatory hurdles faced by foreign stores who are eyeing the Indian market with renewed interest.

“We are now internally reviewing the details (of the investment board’s decision),” an IKEA spokeswoman told AFP, adding that she could not confirm the curbs as reported by The Economic Times on Friday.

Among the lines IKEA has been told by the Foreign Investment Promotion Board that it cannot sell are gift items, fabrics, books, toys, consumer electronics and food, the newspaper reported.

The group will, however, be allowed to sell furniture — its core business.

The investment panel also reportedly told IKEA it cannot offer customer financing schemes because that would violate banking regulations, or open cafes and food markets because that would break food policy regulations.

IKEA’s entry into India — it has pledged to invest $1.9 billion in the coming years — is being closely watched by competitors as a test case for how a large foreign corporation negotiates India’s byzantine rules and red tape.

India’s government announced a string of pro-market and investor-friendly reforms in September that relaxed or removed barriers preventing foreign retailers from operating in the country.

IKEA hopes to open 25 of its trademark blue-and-yellow stores in India through a 100-percent owned unit, Ingka Holding, as part of a wider push into emerging markets like China and Russia.

The government initially insisted that IKEA obtain 30 percent of its supplies from small Indian manufacturers that the Swedish retailer feared would not be able to keep pace with demand.

Later the government dropped the demand specifying the size of the supplier, but kept the 30 percent local sourcing requirement.”

via No meatballs’ as IKEA hits hurdles in India – Hindustan Times.

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