Blog: Could food scare blow Maple Leaf off course?
Dean Best | 22 August 2008
Michael McCain, boss of Canadian food giant Maple Leaf Foods, calls it "Destination 2010".
Destination 2010 is the company's project to overhaul its business, restructuring its meat and bakery businesses in a bid to focus on its brands and boost growth.
The overhaul has proved problematic in the face of soaring commodity costs and last month, after a slump in first-half earnings, analysts were speaking of a “very challenging” short-term outlook for the company.
This week, that outlook has got cloudier amid speculation that the company could be involved in a listeria outbreak in its domestic market. Listeria has been detected in two Maple Leaf products and the company has closed a plant in Toronto as it reviews its food safety procedures. More than a dozen people have fallen ill and there has been one confirmed fatality – although there has yet been no confirmed link to Maple Leaf.
Nevertheless, the episode could shake consumer confidence in Maple Leaf, just when it is going through its major restructuring process.
The threat to Maple Leaf could be much worse if a link is identified and, although the company should be praised for its proactive steps so far, it remains to be seen just how much the outbreak could dent its reputation among consumers.
(Editor's note: just-food is closed on Monday 24 August. Public holiday here in the UK. Best get the raincoat out).
Maple Leaf Foods has already shown signs of wilting as it presses on with a major restructuring. And the outlook for the company has not got any brighter amid the ongoing listeria scare in Canada, but...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....
As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- Why Danone is withdrawing Dumex from Vietnam
- Why May's Brexit comments give reason for optimism
- 2 Sisters chief Boparan buys Bernard Matthews
- Fonterra says value-added strategy paying off
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- Bernard Matthews pensions scheme under review
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Foodservice Market 2016-2020
- Global Food and Drinks Closures: Performance and Opportunities
- Fast Food Restaurants in the US - Industry Market Research Report