Thursday, December 3, 2015

Chipotle Tightens Produce Supplier Control, Will Impact Local Suppliers

Chipotle is tightening its produce supplier control program after getting slammed by a foodborne illness outbreak associated with produce.  The last outbreak, which was caused by E. coli 0126 contamination, affected 45 people in 6 different states.  (The earlier report had the number at 35).  This is the third major outbreak associated with this chain.

Chipotle's strategy was to utilize local growers wherever they could.  But increasing the supplier requirements may mean that some of the local growers/producers will need to adapt, and as indicated in this story, there may be some that will be challenged. Chipotle's overall food safety strategy has stumbled, costing them billions...in terms for having to shut down their stores in the northwest, and having their stock price fall by 23% .

It is great to use local suppliers, but regardless of location or of size of the supplier, the same standards must be met.

 
USA Today
Chipotle to tighten produce supplier rules after E. coli outbreak
Aamer Madhani, USA TODAY 6:01 p.m. EST December 2, 2015
 
Chipotle Mexican Grill will soon have stricter guidelines for its suppliers that will mean the chain will be using local produce less often, a move the company is making in the aftermath of an E. coli outbreak that sickened dozens of customers in six states.

Chris Arnold, a company spokesman, said in an e-mail Wednesday that the company plans on formally releasing some of its changes in the coming days, if not sooner.
 
"We do expect that some of the local suppliers we have used will not meet more stringent testing standards we have put in place," Arnold said.
 
The decision to move away from the chain's preference for local produce, when available, for its burritos, salads and rice bowls is a significant shift for the fast-casual chain, which has prided itself on providing fresher ingredients than its competitors.
 
The Centers for Disease Control and Prevention reported last month that 45 Chipotle customers had been infected with the food illness in California, Minnesota, New York, Ohio, Oregon and Washington state. The majority of those impacted had eaten at restaurants in Oregon and Washington.
 
The company's stock price was battered in the aftermath of the E. coli outbreak, which led to the shuttering of 43 restaurants in the Pacific Northwest for nearly two weeks.
 
Chipotle (CMG) stock was trading at $574.62, down 1.05% in late afternoon trading. The stock had reached a peak of $749.12 in early August.
 
 
 
CDC Web
Multistate Outbreak of Shiga toxin-producing Escherichia coli O26 Infections Linked to Chipotle Mexican Grill Restaurants
 
Posted November 20, 2015 2:15 PM ET
  
At A Glance
Deaths: 0
Hospitalizations: 16
What's New?
  • 3 additional states have reported people infected with the outbreak strain of Shiga toxin-producing Escherichia coli O26 (STEC O26) since the last update.
  • 45 people infected with the outbreak strain of STEC O26 have now been reported from a total of 6 states: California (2), Minnesota (2), New York (1), Ohio (1), Oregon (13), and Washington (26).
  • The epidemiologic evidence available at this time suggests that a common meal item or ingredient served at Chipotle Mexican Grill restaurants in several states is a likely source of this outbreak.
  • The investigation is still ongoing to determine what specific food is linked to illness.
  • CDC will advise the public if specific steps are identified that consumers can take to protect themselves.
Highlights
  • Read the Advice to Consumers »(http://www.cdc.gov/ecoli/2015/o26-11-15/advice-consumers.html)
  • CDC, the U.S. Food and Drug Administration, and public health officials in several states are investigating an outbreak of Shiga toxin-producing Escherichia coli O26 (STEC O26) infections.
  • As of November 19, 2015, 45 people infected with the outbreak strain of STEC O26 have been reported from 6 states.
  • 16 ill people have been hospitalized. There have been no reports of hemolytic uremic syndrome and no deaths.
  • The epidemiologic evidence available at this time suggests that a common meal item or ingredient served at Chipotle Mexican Grill restaurants in several states is a likely source of this outbreak.
  • 43 (96%) of 45 ill people interviewed reported eating at a Chipotle Mexican Grill restaurant in the week before their illness started.
  • The investigation has not identified what specific food is linked to illness.
  • Chipotle Mexican Grill is assisting public health officials with understanding the distribution of food items served at locations where ill people ate and this work is ongoing.
  • Investigators are using whole genome sequencing, an advanced laboratory technique(http://www.cdc.gov/amd/), to get more information about the DNA fingerprint of the STEC O26 bacteria causing illness.
  • To date, 10 STEC O26 isolates from ill people in Washington (9) and Minnesota (1) were found to be highly related genetically to one another.
  • CDC and state and local public health partners are continuing laboratory surveillance through PulseNet to identify additional ill persons and to interview them.
  • Consumers should contact a health care provider if they recently became ill with diarrheal symptoms after eating at a Chipotle Mexican Grill restaurant.
  • CDC will advise the public if specific steps are identified that consumers can take to protect themselves.

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