Tainted peanut butter manufacturer enjoys profitable quarters

It seems that the recent peanut butter recall has not slowed down the food processing giant ConAgra Foods. Despite its nationwide requirement to remove Peter Pan and Great Value brands of peanut butter due to salmonella contamination, the company posted third-quarter earnings of $192.6 million on revenues of $2.92 billion.

The Omaha-based company reported its earnings on March 22, 2007, just over a month after the recall began. These earnings beat analyst expectations, especially given the peanut butter recall, causing the stock to rise on the news.

However the company is not out of the woods yet. ConAgra estimates that the total costs of the recall will be $50 to $60 million altogether. Approximately $48 million was already accounted for in its third-quarter earnings. CEO Gary Rodkin said on record that he did not expect claims against the company as a result of the salmonella poisoning to affect future results.

This statement might come back to haunt him. As of the earnings release date, at least 425 people in 44 states were exposed to salmonella poisoning. The bacteria infection, which invades the body through contaminated food products like eggs and poultry, causes diarrhea and fever. In severe cases, it can result in death. Those at highest risk are infants, the elderly, and people with a lowered immune system.

A March 7, 2007 report released by the Centers for Disease Control and Prevention (CDC) confirmed that an outbreak of the Tennessee strain of salmonella had been underway since August 2006. It concluded that those getting sick had consumed either Peter Pan peanut butter or Great Value peanut butter, both produced at ConAgra’s Sylvester, GA plant.

"We are truly sorry for any harm that our peanut butter products may have caused," Rodkin said. "I want to assure our consumers, customers, investors and employees that we are correcting the operational problems that led to this and are committed to the highest possible standards of food safety throughout our operations."

Food-borne infection like Salmonella is usually the result of negligence at some level. If you have developed Salmonella poisoning from peanut butter or any other source, contact a Jim S. Adler & Associates personal injury lawyer for a free legal case assessment. We can help you find out your rights and decide whether or not you may be eligible for compensation. Call us directly using our toll-free number, or submit your case for a free review by filling out the form on this page with the details of your Salmonella poisoning from tainted peanut butter.