Walmart has pulled donkey meat off the shelves in China after testing showed it contained fox meat.
It's a blow to the U.S.-based Walmart, which is hoping to enter the lucrative grocery store market in China, Reuters reported Thursday.
Customers who bought the tainted donkey meat -- a popular snack in some areas of China -- will be reimbursed, the company said, and it has opened an investigation into the supplier.
"It is a deep lesson (for us) that we need to continue to increase investment in supplier management," Walmart China president and CEO Greg Foran said in a statement.
In China, consumers are sensitive to tainted food stories following the tainted milk scandal and recycled "gutter oil" used for cooking.
Shaun Rein of the Shanghai-based China Market Research Group told Reuters this recall "is another hit on Walmart's brand, meaning wealthy shoppers will start to lose the trust they had before."