Wal-Mart is pulling back its Five Spice donkey meat for fear it contains DNA from a Fox BBC News reported Thursday.
Tests done by the retailer revealed the issue, and food officials from China's Shandong region subsequently announced the news The Telegraph reported.
"It is a deep lesson (for us) that we need to continue to increase investment in supplier management," Greg Foran, chief executive of Wal-Mart's chinese operations told BBC News.
Wal-Mart is looking into the case and plans to strengthen its laws for food safety. Consumers who purchased the product will get a refund according to The Telegraph.
"We are deeply sorry for this whole affair," Foran told The Telegraph. "It is a deep lesson that we need to continue to increase investment in supplier management."
"This is another hit on Wal-Mart's brand, meaning wealthy shoppers will start to lose the trust they had before," Shaun Rein, Shanghai-based managing director at China Market Research (CMR) Group told Reuters.
Wal-Mart has 359 stores in China with goals for 110 stores in the years to come The Telegraph reported.
The retailer and French company Carrefour were penalized $9.5 million yuan or $1.57 million by China in 2011 for exploiting prices on inventory Reuters reported. Wal-Mart also received a summons for marketing off duck meat after its expiration date. A company that provides chicken to KFC reportedly contained large amounts of antibiotics Reuters reported.
The cases are a result of China's lack to properly manage its supply chain regarding items like baby milk, and cooking oil according to information from The Telegraph reported.
Wal-Mart runs over 400 locations in China, and contends with Sun Art Retail Group Ltd., and China Resources Enterprise Ltd.
Wal-Mart's shares decreased 7.5 percent to 5.2 percent within the past three years.
Customers expressed their views about the situation on blog site Sina Weibo according to Weibo.
"Isn't fox meat more expensive than donkey meat anyway?" a user said on the site Reuters reported.
