Salmonella recall cost Cranswick £3m
Cranswick revealed that a Salmonella incident earlier this year cost the company more than £3 million ($3.6 million).
In a half-year results statement, which covers until September 24, 2022, the food producer said the group’s adjusted operating profit was 1.7% lower at £68.4m (£81.4m). of dollars).
This included a £3.1 million ($3.7 million) charge due to costs associated with the product recall in May after Salmonella was found at the Hull cooked poultry facility in England.
The lower operating margin reflects the short-term lag in the resumption of inflationary pressures in several cost categories. Good progress is being made in managing and recovering these additional costs, Cranswick said.
Recall and production stopped
In May, Cranswick halted production at the Hull plant after finding Salmonella. A routine internal inspection revealed the problem in some cooked chicken products.
The company asked its customers to remove any product containing ready-to-eat chicken produced during the affected period.
The products were sold as ingredients for sandwiches and meals at UK retailers and takeaway food outlets. A number of supermarkets including Marks and Spencer, Tesco, Waitrose, Aldi and Sainsbury’s have issued recalls. So does Amazon, Costa, Starbucks and Caffé Nero coffees, and the Pret A Manger sandwich franchise.
Cooked poultry revenues fell following the recall as the plant was briefly closed while testing and remedial work was carried out, but Cranswick said volumes continued to recover throughout the period .
Cranswick said he also continues to closely monitor events due to bird flu with strict biosecurity protocols being enforced at all farms.
The poultry industry in the UK is experiencing its most virulent bird flu season with a record number of captive bird protection and surveillance zones in place. At the beginning of November, a national bird housing ordinance was introduced.
Adam Couch, CEO of Cranswick, said the company has made progress in a difficult operating environment.
“Our unwavering focus on quality, value, innovation and our people, and our commitment to delivering great tasting food, created with passion for our customers and the UK consumer, continues to strengthen our competitive edge,” he said. -he declares.
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