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Business






Posted on Mon, Oct. 14, 2002
Recall sends stock tumbling, but will consumers worry?

Associated Press Writer

Jerry Hahn bit into his turkey sandwich Monday with a linebacker's bravado.

Hahn had heard about the national recall of 27.4 million pounds of sliced deli poultry over concerns about possible listeria contamination. But the snow-shovel salesman wasn't worried.

"I was informed by a local person here this morning that it is only deli meat, and that these people here roast their own. So I'm taking their word for it," Hahn, 55, of Monticello, Iowa, said as he ate lunch from a stand at the Reading Terminal Market. "But I'm also the type of guy that would have flown on Sept. 12."

Wampler Foods hopes most of the country reacts to the nation's biggest meat recall as Hahn did.

Its parent company, Pilgrim's Pride, of Pittsburg, Texas, announced the voluntary recall - the largest meat recall in U.S. history - on Sunday after tests found a strain of the potentially fatal bacteria at a suburban Philadelphia plant.

The nationwide recall covers meat processed at the company's plant in Franconia, about 25 miles north of Philadelphia, from May 1 through Oct. 11. The plant, which has about 800 employees, was expected to be closed for at least several days for cleaning and further tests.

The discovery followed a U.S. Department of Agriculture investigation of a listeria outbreak in eight Northeast states since early summer that caused at least 120 illnesses and 20 deaths.

While much of the meat involved in the recall already has been eaten, some consumers said they would not buy turkey for a while.

"Yesterday, I went (to the grocery store) for the kids' lunch. Of course, I stayed away from the turkey," said Dom Spatano, who runs a deli in the market.

Shares of Pilgrim's Pride fell nearly 25 percent to close at $5.28, down 97 cents Monday on the New York Stock Exchange.

"The stock took more of a hit today than I think we thought, relative to the recall," said Rick Cogdill, chief financial officer of Pilgrim's Pride.

The company has not yet estimated the cost of the recall, but said the product lines being recalled, including some types of turkey sold under the Wampler label, represent less than 2 percent of company sales.

Pilgrim's Pride was the nation's second largest poultry seller with 8.5 percent of the market, behind Tyson Foods with 19.8 percent, last year.

"There have been a number of recalls recently, starting with the ConAgra beef recall, so at some point - I hate to say it, but the consumer gets a little bit numb. I don't see people turning away from meat," said analyst Diane Geissler of Merrill Lynch.

The recall covers deli meat primarily sold under the company's Wampler Foods brand, though it is also sold under brands including Block & Barrel, Bonos, Golden Acre, Reliance and a variety of private labels. The products include turkey and poultry sold freshly sliced or made into sandwiches at deli counters and in individually sold packages of sliced deli meats.

Listeria is not a concern in uncooked turkey and chicken because the cooking process kills the bacteria, officials said.

"It's all about ready-to-eat product. It just happens to be that sliced deli turkey meat is a product that a lot of people eat," said the USDA's Steve Cohen.

He said testing on the samples taken at the Franconia plant was not complete.

"There's a possibility that one of the environmental samples taken at the plant could eventually be determined to be a match for the outbreak strain," Cohen said.

Because consumers might not have access to the meat's original packaging, the best way to know if a product falls under the recall is to ask if it comes from a package that bears the plant number P-1351 inside the USDA mark of inspection.

Listeria can cause high fever, severe headache, neck stiffness and nausea, according to the USDA. It can be fatal in young children, the elderly and people with weak immune systems and can cause miscarriages and stillbirths.

ON THE NET

USDA Food Safety and Inspection Service: http://www.fsis.usda.gov

Wampler: http://www.wampler.com

Recalled Products: http://headlines.net/wamplerfoods/02_products.html

Centers for Disease Control listeria page: http://www.cdc.gov/ncidod/dbmd/diseaseinfo/listeriosis_g.htm

---

For more information:

Consumers with questions can call the company at toll-free at 877-260-7110 or the USDA Meat and Poultry hot line at 800-535-4555.

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