Economic Calendar

Sunday, October 26, 2008

Itoham to Recall Millions of Products on Possible Contamination

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By Maki Shiraki

Oct. 26 (Bloomberg) -- Itoham Foods Inc. will recall 2.67 million packs of wieners and other products after discovering contamination of well water used at one of its factories, the ham and sausage maker said yesterday.

The recall affects products made from Sept. 18, when Itoham inspected the water, to Oct. 15 when it switched to a safe water supply, Managing Executive Officer Shinichi Yamada told reporters at a press conference yesterday in Tokyo. It will cost the company 300 million yen ($3 million), he added.

``I can't measure the impact on our earnings,'' Yamada said. ``We can expect people to react strictly and reduce purchases, but it's impossible to fully anticipate what consumers will do.''

The recall is the latest by a Japanese food processor in the wake of China's contaminated milk scandal. Nissin Foods Holdings Co. voluntarily recalled 487,820 packs of its Cup Noodles last week after a woman who ate the product became sick.

Asahi Breweries Ltd. in September recalled 650,000 bottles of ``shochu'' spirits contaminated by pesticide, at a cost of 1.5 billion yen.

Itoham said it will announce on Oct. 30 whether cyanogen, the toxic substance found in the water, tainted the products.

To contact the reporter on the story: Maki Shiraki at in the Tokyo or at mshiraki1@bloomberg.net




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