Would You Like Fries With Those Spicy Pork McBites?

NOVEMBER 14, 2013, 6:38 PM

Would You Like Fries With Those Spicy Pork McBites?

By AMY QIN

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With competition heating up in China’s $174 billion dollar fast-food market, McDonald’s is seeking to up its game by capitalizing on the country’s increasingly voracious appetite for pigs. The result? Spicy Pork McBites.The new breaded and fried pork nuggets, or 脆辣猪猪球 (literally, “crispy spicy piggy balls” in Chinese), were unveiled this month and can be purchased in two sizes: a small box of 14 for 9.50 renminbi, or about $1.50; or a large box of about 55 McBites for 29 renminbi. A variation on the Chicken McNuggets, McDonalds’ latest offering is part of its global strategy to tailor its menu to regional tastes to better compete with local chains, such as the popular Taiwanese-owned, fried chicken chain Dicos. Walk into one of the more than 1,700 McDonald’s outlets in China and you can find chicken and beef rice wraps, taro pies, tapioca bubble tea, and now, Spicy Pork McBites sold alongside the Big Mac.

The introduction of pork-based nuggets in China is not a surprising move by the United States-based fast-food giant.

China is now the world’s leading pork consumer. Per capita pork consumption is growing, with the average citizen consuming more than 80 pounds per year. The Chinese demand for pork has made finding a reliable supply a national priority, a concern that led to the $4.7 billion purchase in September of Virginia-based Smithfield Foods, the world’s largest pork processor, by the Chinese company Shuanghui International.

While it remains to be seen whether the new McDonald’s pork offering is a hit among Chinese consumers, it is unlikely that the McBites – which are comparable in texture and seasoning to the popular Sichuan spicy popcorn chicken dish laziji, but without the bones – will help solve what is shaping up to be a growing public health crisis. China has the world’s greatest number of people with diabetes, according to a recent study. It is a problem that experts have attributed in part to rising rates of obesity and, indirectly, the growing popularity of Western-style, high-caloric diets and fast food.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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