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Pet food recall to cost Menu Foods $45M
By cuzzy | May 31, 2007
Menu Foods’ massive recall of pet food will cost the company at least $45 million, and that doesn’t take into account the drop in future sales or legal settlements not covered by insurance, the Ontario-based company estimates.
The projected loss is in the Streetsville company’s latest financial statement, which showed the recall cost it a third of its sales and all its profit in the first quarter.
The maker of dog and cat food said its Q1 profit last year turned into a $17.5-million loss this year. Sales fell from $93.9 million last year to $64.5 million.
“Menu, along with several other pet food manufacturers in the United States, were the victims of a terrible fraud, and the [Menu Foods Income] Fund’s results for this quarter reflect the costs,” the company said in a statement.
It also said two of its customers that account for 4.5 per cent of sales have cancelled contracts with Menu Foods. A third customer, which accounted for 11 per cent of Menu’s total sales last year, said it has put future orders for the cuts and gravy dog and cat food products on hold.
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Topics: dog news, facts, info |
May 31st, 2007 at 8:15 pm
Hi, I’m on a quest to find blogging dogs, peace-loving dogs for next week’s “Dona Nobis Pacem” Peaceglobe day…the cats have overtaken the movement so far!!
Please join!
Thank you.
Second
Blogblast for Peace
6th June 2007
November 7th, 2008 at 6:20 pm
It’s so scary that all that bad stuff can make it into the foods we consider safe. And, in such quantities that the recall got this big. Scary stuff.