Recall bites into Cadbury sales
2 Aug 2006
Chocolate maker post £5-million sales maker, £20m costs and loss in market share due to pipe leak contamination
London — Cadbury Schweppes plc has suffered a £5-million loss in sales due to product returns and a 1.1% drop in UK market share following its recall of several Cadbury chocolate products. The company is also forecasting costs of £20 million relating to the recall, according to the group's half-year results statement.
Admitting that the recall on 23 June, had an impact on (financial) performance, the company said it is “implementing changes to its UK manufacturing and quality assurance processes so that this cannot happen again.”
The recall was prompted by the discovery of Salmonella Montevideo contamination from a leaking pipe at the company’s Marlbroook, Herefordshire plant in January. Government food safety experts have since criticised the company’s testing regime for allowing contaminated product to be passed fit for human consumption.
