The company said they found a 'persistent presence' of the Listeria in the freezing tunnel. Freezing tunnels are a difficult spot in frozen food facilities. While Listeria would not be growing when frozen, it is during defrost cycles when growth would occur, or on the input side where warmer product enters the freezer. Freezers are often huge with a large amount of chain belts that are difficult to clean.
The recall is said to have cost the company $35 million to restart the plant, but does not say this include costs associated with litigation or with recalled product. The share price also dropped 38 percent, but the stock price did recover some.
Reuters
https://www.reuters.com/article/us-greenyard-contamination/greenyard-to-re-open-hungarian-plant-after-finding-listeria-cause-idUSKCN1LT0ZY
Greenyard to re-open Hungarian plant after finding listeria cause
September 13, 2018
(Reuters) - Belgian frozen foods producer Greenyard said on Thursday it would re-open its Hungarian plant after identifying the cause of an outbreak of the food-borne disease listeria, driving its shares 15 percent up.
Greenyard said it had found “persistent presence” of listeria monocytogenes bacteria in one of the freezing tunnels and would therefore close down this tunnel.
On June 29, the Hungarian Food Safety Authority issued a resolution for Greenyard to stop all marketing and to recall all its frozen food produced in the Hungarian plant.
Greenyard shares plunged 38 percent on July 16, its worst day since going public in 1999, following local media reports that deaths in Europe due to a listeria outbreak were potentially linked to frozen vegetable products produced by the company’s plant in Hungary.
The company is confident that the impact would be within its previous assessment of 30 million euros ($34.87 million) due to the restart of the facility. Its shares were 13.4 percent up by 0735 GMT, having risen as much as 15.2 percent earlier.
The re-opening of the facility has been reviewed by the authorities and will be based on “stringent release procedures”, the company said.
Reuters
https://www.reuters.com/article/us-greenyard-contamination/greenyard-to-re-open-hungarian-plant-after-finding-listeria-cause-idUSKCN1LT0ZY
Greenyard to re-open Hungarian plant after finding listeria cause
September 13, 2018
(Reuters) - Belgian frozen foods producer Greenyard said on Thursday it would re-open its Hungarian plant after identifying the cause of an outbreak of the food-borne disease listeria, driving its shares 15 percent up.
Greenyard said it had found “persistent presence” of listeria monocytogenes bacteria in one of the freezing tunnels and would therefore close down this tunnel.
On June 29, the Hungarian Food Safety Authority issued a resolution for Greenyard to stop all marketing and to recall all its frozen food produced in the Hungarian plant.
Greenyard shares plunged 38 percent on July 16, its worst day since going public in 1999, following local media reports that deaths in Europe due to a listeria outbreak were potentially linked to frozen vegetable products produced by the company’s plant in Hungary.
The company is confident that the impact would be within its previous assessment of 30 million euros ($34.87 million) due to the restart of the facility. Its shares were 13.4 percent up by 0735 GMT, having risen as much as 15.2 percent earlier.
The re-opening of the facility has been reviewed by the authorities and will be based on “stringent release procedures”, the company said.
Greenyard said it had shifted some of the production to other facilities in Europe and using the facilities of subcontractors for some products, adding it was also implementing additional safety and cleaning measures
Reuters
https://www.reuters.com/article/us-greenyard-recall/greenyard-sees-35-million-listeria-related-product-recall-impact-idUSKBN1K70JL
Greenyard sees $35 million listeria-related product recall impact
(Reuters) - Belgian food company Greenyard said on Tuesday that the first estimate on the financial impact from its recall of frozen products, potentially linked to an outbreak of the food-borne disease listeria in Europe, was estimated at 30 million euros ($35 million) after insurance.
The company’s shares have fallen 38 percent since local media reports on Friday said that deaths due to a listeria outbreak could be linked to frozen vegetable products produced by Greenyard’s plant in Hungary.
The plant has been shut and the company has been conducting an in-depth review after the Hungarian Food Chain Safety Office banned all frozen vegetable and frozen mixed vegetable products produced by the facility on June 29.
Berenberg analysts said on Monday that food safety is the biggest risk for a food company, and “this is the latest in a string of disappointing newsflow relating to Greenyard.”
Reuters
https://www.reuters.com/article/us-greenyard-recall/greenyard-sees-35-million-listeria-related-product-recall-impact-idUSKBN1K70JL
Greenyard sees $35 million listeria-related product recall impact
(Reuters) - Belgian food company Greenyard said on Tuesday that the first estimate on the financial impact from its recall of frozen products, potentially linked to an outbreak of the food-borne disease listeria in Europe, was estimated at 30 million euros ($35 million) after insurance.
The company’s shares have fallen 38 percent since local media reports on Friday said that deaths due to a listeria outbreak could be linked to frozen vegetable products produced by Greenyard’s plant in Hungary.
The plant has been shut and the company has been conducting an in-depth review after the Hungarian Food Chain Safety Office banned all frozen vegetable and frozen mixed vegetable products produced by the facility on June 29.
Berenberg analysts said on Monday that food safety is the biggest risk for a food company, and “this is the latest in a string of disappointing newsflow relating to Greenyard.”
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