Process Management

News 233 views last update:6 Aug 2012

Menu Foods loses third of its sales

Menu Foods posted a third-quarter loss Wednesday. The Canadian pet food maker said that customers who accounted for more than a third of its sales in 2006 will no longer do business with the company.

Menu Foods is still struggling with the fallout from its massive recall when wheat gluten from China used in its pet food was tainted with melamine.

Losses were CAN$19.3-million in the third quarter ended Sept. 30. In the same period last year Menu reported a profit of $1.3-million.

Revenue fell to $78.1-million from $90.1-million a year earlier, and the company's forecast was bleak. The company said that during the quarter it booked $11.1-million in recall expenses.

One third of sales lost
"Customers whose volume represented approximately 37% of sales in 2006 will no longer be purchasing these products from Menu," the company said. "The effects of this lost business will be felt over time."

Furthermore, customers whose 2006 volumes accounted for almost 14% of sales "have already stopped doing business with Menu," it said.

Menu's recall, first announced in March, has been expanded several times and is now one of the largest in North American history.

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