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Starbucks using Kowloon Dairy milk in S. China

Wed Sep 24, 2008 3:33pm EDT

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SEATTLE, Sept 24 (Reuters) - Starbucks Corp (SBUX.O), which last week pulled milk from Mengniu Dairy (2319.HK) at its 300-plus stores in mainland China amid a safety scare, said on Wednesday it had begun using fresh milk from Kowloon Dairy Food Products Co Ltd in 55 of its stores in South China.

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Starbucks said Kowloon's dairy products have been confirmed safe by China's General Administration of Quality Supervision, Inspection and Quarantine, and the Guangzhou Technical and Quality Bureau, which are government safety watchdogs.

The Seattle-based coffee shop chain last week said it voluntarily pulled milk supplied by Mengniu Dairy, one of the companies whose product has tested positive for melamine contamination.

Starbucks said that no employees or customers were sickened by the Mengniu milk.

Several children have died and thousands have fallen ill with kidney stones after drinking milk laced with the toxin melamine. (Reporting by Lisa Baertlein; Editing by Brian Moss)



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