Nestle halts pizza plant after poisonings sap sales
This photograph taken on September 15, 2022, shows a view of the entrance of the factory of the Buitoni group, with the logos of Nestle and Buitoni, in Caudry, northern France. (Photo by DENIS CHARLET/AFP via Getty Images)
Food giant Nestle said Friday that it would suspend work at a French factory whose frozen pizzas were suspected to be behind deadly food poisonings in children last year.
Sales of the Buitoni brand have plunged since two children died and dozens more fell ill in 2022 after eating pizzas from its Fraich'Up line, the Swiss group told AFP.
One production line at its factory in Caudry, northeastern France, had reopened in December after nine months of stoppage.
"Despite all the work put into restarting the factory... the worsening outlook for orders forced Nestle France to react," a spokesman said.
Employees have for now been told that the closure is temporary, although some fear the plant will be shuttered for good, taking almost 200 jobs with it.
"I think we're heading for the factory to be shut down, without a doubt," Caudry mayor Frederic Bricout said, calling on Nestle to switch the workers to another product.
Even before the halt, workers were no longer turning out the Fraich'Up pizzas, sold with uncooked bases, which are suspected of spreading the E. coli bacteria.
Health authorities got on the trail of the food poisonings in February 2022 after a spate of kidney failures in children caused by E. coli.
Nestle closed both Buitoni production lines in Caudry in March and issued a recall.
The company reported that its in-house testing found no E. coli in or around the production line, but that frozen pizzas made between October 2021 and February 2022 were contaminated.
The bacteria could have been introduced from the flour used to make the bases, poor hygiene conditions at the factory - which had received warnings in the past - or rodents interfering with the food.
A court in the Paris suburb Nanterre will in May hear a case brought by 55 food poisoning victims claiming some €250 million euros (£221 million) in compensation.
After searching the company's sites in Caudry and in the Paris suburbs, prosecutors opened an investigation for one case of involuntary homicide and 14 more of involuntary bodily harm.
Nestle France chief Christophe Cornu apologised to affected families in July, adding that the firm would open a fund to aid the victims.
In October, group chairman Paul Bulcke vowed to "get to the bottom" of the poisonings.
Nisa Local Longsand Parade in St Neots, a convenience store owned and operated by TYS Retail LTD, has donated £800 to St Neots Rugby Club through Nisa's Making a Difference Locally (MADL) charity.
The donation will be used to purchase new rugby kits for the club's youth teams.
St Neots Rugby Club is a community-based club that has been in existence for over 100 years. The club offers rugby platforms for players of all ages and abilities.
Nisa Local supported St Neots Rugby Club in 2023 with a £800 donation to help expand its youth development programs
“TYS Retail is proud to support St Neots Rugby Club once again,” said area manager Leon Swanwick. “The club plays a valuable role in giving young people in our community the chance to engage in rugby, and we hope our contribution will help it continue to thrive and expand.”
Phil Yates, president of St Neots Rugby Club, said: “We’re extremely thankful to Nisa Local for their generous donation. The funds will go towards purchasing new kits for our youth teams, replacing the old, worn kits that no longer reflect the quality of rugby we aim to deliver. The new kits will not only instil pride in our players but also help attract new talent to the club.”
“With this support, we’re thrilled to enhance our youth development programs,” Yates continued. “We believe rugby is an excellent sport for young people, and we want to make it accessible to everyone who wants to participate.”
Nisa Local St Neot’s is a convenience store located near Peterborough and has been a Nisa retailer for over five years. The store offers a wide variety of groceries, household items, and other convenience products.
The store has so far donated over £7,000 into the community through MADL. Alongside St Neots Rugby Club, they have also supported St Neots Festival, local school & PTA groups, Eaton Socon Women’s Football Team, St Neots Youth Council, St Neots Man Cave, The Kite Trust and St Neots Sentinels.
TYS Retail Ltd has donated over £70,000 through MADL till date.
The Competition and Markets Authority (CMA) has approved Arla Foods Ingredients’ acquisition of Volac’s Whey Nutrition business.
The regulator’s go-ahead follows an evaluation that took place after an acquisition agreement was signed in April.
Both businesses manufacture and supply whey protein concentrate used for sports nutrition and food applications. The CMA has found that the merger does not give rise to “a realistic prospect of a substantial lessening of competition” within the whey protein market.
Commenting on the announcement, Luis Cubel, group vice president and managing director of Arla Foods Ingredients, said: “This is a very welcome decision at a time when demand for high-quality whey ingredients is growing. It means we’re a step closer to a significant acquisition that would consolidate our position as a leader in the whey nutrition space.
“We will now move forward with the formal process necessary to make Volac’s Whey Nutrition business part of Arla Foods Ingredients. Once that is complete, we will be able to comment further on the many advantages of bringing together these two major manufacturers of whey ingredients – not just for both companies, but also for our customers and the industry as a whole.”
Commenting on behalf of the Neville family, James Neville, joint owner of Volac, said: “We were always confident that Arla Foods Ingredients had the necessary expertise and values to take our Whey Nutrition business to the next level, and we are delighted to have reached this important step in the acquisition process. It’s great news for Volac Whey Nutrition, and for the whey ingredients sector, that these two innovative companies have been allowed to join forces.”
Tankerford Ltd has unveiled its first Refuel Market branded store at Ardleigh South Service Station, near Colchester in Essex, following the successful launch of a Nisa Local store at Ardleigh Village Service Station.
Tankerford said this development of a former Spar store represents a significant step in its strategy to innovate and diversify its retail offerings, particularly within the fresh and premium convenience sectors.
The Refuel Market brand, created by Tankerford as a sub-brand, offers a new concept for convenience retail that incorporates a fresh, elevated shopping experience for both commuters and local customers.
The store features a robust selection of freshly prepared food items, an expanded range of snacks, and meal deals tailored to the preferences of on-the-go consumers, with exclusive Co-op own brand products through a supply deal with Nisa.
Explaining the rationale behind the introduction of the Refuel Market sub-brand and the collaboration with Nisa, Jamie Wheeler, retail sales director at Tankerford Ltd, said: “When I joined Tankerford, we saw an opportunity to offer something different within the service station market.
“We wanted to create an inviting, modern space that would encourage people who might have driven past to stop in and see what we have to offer.
“Nisa’s support, especially with Co-op products, was invaluable in shaping Refuel Market, allowing us to cater to a wide range of customer preferences and make fresh, high-quality items more accessible.”
To elevate the experience further, Refuel Market’s premium meal deal includes unique products from new suppliers such as Simply Lunch which has allowed them to offer customers sushi and other high end speciality lunchtime options, as well as locally sourced baguettes and rolls.
The ‘Flavours of the World’ section introduces international snacks and beverages from regions like Europe, the US, and Japan, providing unique options that distinguish Refuel Market from traditional convenience stores.
The store’s focus on premium convenience, paired with an accessible price point, has been well received by early customers. “We’re seeing strong initial interest and positive feedback,” said Wheeler.
“Our customers are largely commuters and truckers, and our aim is to make it easy for them to find quality, fresh products quickly. The response has already exceeded our expectations, with our new offers and refreshed branding enhancing the shopping experience.”
Nisa’s head of retail, Taranjit Singh Dhillon, expressed enthusiasm for the partnership and Tankerford’s innovative approach. “Tankerford’s vision with Refuel Market aligns perfectly with our goal of delivering fresh, convenient options to communities across the UK. We’re proud to be a part of this journey and support the Refuel Market’s growth with our Co-op product range and dedicated service. We look forward to seeing the Refuel Market brand expand and resonate with even more customers.”
Tankerford said it plans to assess the potential for future Refuel Market locations based on site suitability and customer demand.
“This is a trial, but we’re very optimistic,” added Wheeler. “If Refuel Market continues to perform well, we’ll look into bringing this unique shopping experience to other locations that align with the brand’s appeal and values.”
Irish food giant Kerry Group has on Tuesday said it has entered into an agreement to sell Kerry Dairy Holdings (Ireland) Limited to Kerry Co-Operative Creameries Limited for €500 million (£416m).
Kerry Co-Op is the largest shareholder in Kerry Group.
Kerry Dairy Ireland consists of dairy consumer products, with its leading range of brands across cheese, cheese snacks, dairy snacks and dairy spreads which can be found in chilled cabinets across retailers in the UK and Ireland.
It also comprises the dairy ingredients business, which is a leading provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.
As per the deal, Kerry Co-Op members will become direct owners of Kerry shares equivalent to 85 per cent of the Kerry Co-Op's current shareholding. The remaining 15 per cent of the Kerry Co-Op's shareholding in Kerry will be redeemed as part of the consideration for the disposal, following which the Kerry Co-Op will cease to be a shareholder in Kerry and Kerry’s issued share capital will reduce by approximately 2.9 million shares. The transaction will involve no public placement of Kerry Group plc shares.
Under the proposed transaction, the Kerry Co-Op will initially acquire a 70 per cent interest in Kerry Dairy Ireland, while Kerry will retain a 30 per cent interest. The companies have further agreed to certain call-put option arrangements which will transfer the remaining 30 per cent in Kerry Dairy Ireland to the Kerry Co-Op in the forthcoming years.
Kerry said the disposal represents an important step in its evolution to becoming a fully dedicated global taste and nutrition solutions company.
This follows the significant portfolio development over recent years including the build out of its proactive health, food protection and preservation, and enzymes platforms, while also divesting of the Consumer Foods Meats & Meals business and the Sweet Ingredients portfolio.
“Our strategy of continuous business development and portfolio evolution aligned to our customers has been a key underpin of Kerry’s success over the years. The proposed transaction will result in a global leader in taste & nutrition solutions and an end-to-end industry leader in dairy,” Edmond Scanlon, chief executive of Kerry Group, commented.
“Both businesses are perfectly positioned for success, thanks to the dedication and extraordinary contribution of our people over the years. On completion, Kerry will become a pure play global business to business taste & nutrition company, with sustainable nutrition at its core, while also supporting our financial objectives of continued market outperformance, strong margin progression, and delivering greater returns for our shareholders.”
James Tangney, chairman of Kerry Co-Op commented: "We are very pleased to have reached an agreement that will ultimately deliver full ownership of one of the leading dairy businesses in the country, while also, in effect, releasing circa 85 per cent of Kerry Co-Op’s Kerry Group shares into the hands of our members to be retained or sold by each of them at a time of their choosing.
“Kerry Co-Op and Kerry Group have a shared heritage that has helped create value, pioneer change and shape the dairy industry. As direct shareholders in the plc, members will continue to gain from the Group’s progress and, in tandem, the Co-Op will focus on ensuring Kerry Dairy Ireland becomes a platform for future growth”.
Kerry said the proposed transaction will have a positive impact on its overall financial metrics, with an enhanced revenue volume growth profile, combined with a step change in Kerry’s EBITDA margin profile and an improved overall sustainability profile.
Top Swiss chocolatier Lindt & Sprungli is disputing claims brought by US consumers in a class action lawsuit concerning the levels of heavy metals found in its chocolate bars.
Lindt has unsuccessfully attempted to end a class action lawsuit in the US, launched in February 2023, following an article by a US consumer association questioning the presence of heavy metals in dark chocolate bars from several manufacturers, including two bars produced by Lindt.
"Lindt & Sprungli disagrees with all the allegations made in the US lawsuit," the firm told AFP in a statement late on Monday night.
"Our Lindt & Sprungli quality and safety procedures ensure that all products comply with all applicable safety standards and declaration requirements and are safe to consume," it added.
Consumers in the US states of Alabama, California, Florida, Illinois, Nevada and New York had taken legal action on the back of a 2022 article by the US consumer organisation Consumer Reports, concerning the levels of lead and cadmium in dark chocolate bars.
The organisation tested 28 bars sold in the US. One of the Lindt bars was among eight found to have a high level of cadmium, while another was among 10 with a high level of lead, though neither had the highest levels.
Two of its bars, marketed under the US brand Ghirardelli, were among the five classified as "safer choices".
While bars from other manufacturers had higher concentrations of heavy metals - including organic brands - consumers insisted in the class action lawsuit that they had paid premium prices for Lindt because they believed they were "purchasing quality and safe dark chocolate".
They accused Lindt of having violated the labelling rules in force in their states.
The Eastern District of New York district court denied Lindt's motion to have the lawsuit dismissed.
'Puffery' argument
The chocolatier's lawyers maintained that the words printed on its packaging - "excellence" and "expertly crafted with the finest ingredients" - were unactionable "puffery".
The court decision outlined product puffery as "exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely".
The line of defence startled some newspapers in a country highly attached to the prestige image of its goods, with Switzerland's NZZ am Sonntag weekly saying Lindt's strategy had "dismantled its own promises of quality".
Lindt, however, stressed that the use of a "puffery argument" was a "technical" legal response before a US court and not an admission of inferior quality products.
That argument, Lindt told AFP in a statement, was merely "used to clarify that an advertising challenged by plaintiffs is not sufficiently objective to support the specific false advertising claim being made".
But nonetheless, it insisted that it stood by its claims of "excellence" and products "expertly crafted with the finest ingredients".
"Our consumers can have full confidence in that," said Lindt.