How KFC Went Trans-Fat Free

KFC capped off 2 1/2 years of efforts in its recent announcement that it will switch from using trans-fat to an innovative soy hybrid oil that is stable and does not need hydrogenation to have a long shelf or fry life. It's a fascinating story about the corporate will-power needed to change the old, and the alignment needed from franchisee to supply chain.

1. The goal was set by KFC's CEO to get off of trans fat and the talented resources put in place to get the job done. But all did not go smoothly because the expected substitutes flunked. Finally, an obscure soybean hybrid seemed to meet the criteria, but unit costs were over budget.
2. Then there were the numerous taste tests to make sure they had the right product and buy-in. The product faced a last panel of judges: the company's franchisee advisory council. They split 50-50, just as any coin-tosser would and an indicator the new oil was acceptable to the most finicky eaters and sellers of traditional KFC chicken.
3. The supply chain had to be developed. The new plant, achieved through conventional cross-pollination methods, had been grown for the first time on just 100,000 acres in Iowa in 2005, a drop in the bucket compared to KFC's needs. But with the right price point, the supplier Monsanto predicts farmers will plant 1.5 million acres of the new soybean in 2007, a threefold increase from 2006.

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