Fast food restaurants and food companies have lately been reeling under heavy losses due to repeated recalls of products that are feared to be contaminated with bacteria or allergic components.
Mondelez International, Inc. (NASDAQ:MDLZ) is the latest to join the bandwagon, announcing a nationwide recall of its Honey Maid Teddy Grahams CinnamonCubs Graham Snacks. The recall is a cautionary step following a wheat flour recall by Grain Craft, a third-party flour supplier to one of the company’s external manufacturers. Notably, the sale of the snacks was restricted to foodservice channels only.
The company fears that the products might contain undeclared amounts of peanut residue in the flour.
This Deerfield, IL company has further notified that consumers with severe peanut intolerance should avoid the recalled products for now. However, the Food and Drug Administrationhas stated that the amount of peanut in the flour is not expected to cause adverse health effects on consumers allergic to peanuts. There have been no reports of related sickness till now.
Widespread recalls by food companies are in one way a relief for consumers because it ensures that regulatory authorities are more vigilant. However, negative publicity associated with these outbreaks keep customers away from fast food restaurants.
Recently, food companies like TreeHouse Foods Inc. (NYSE:THS) , General Mills, Inc. (NYSE:GIS) ,Costco Wholesale Corp. (NASDAQ:COST) recalled a line of food items following a recent outbreak of bacterial infections caused by potentially lethal bacteria like Listeria monocytogenes and E.coli.
Mondelez carries a Zacks Rank #3 (Hold).
GENL MILLS (GIS): Free Stock Analysis Report
TREEHOUSE FOODS (THS): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis Report
MONDELEZ INTL (MDLZ): Free Stock Analysis Report
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