Menu Foods loses third of its sales 15 Nov 2007
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.
Related news:
Canadas Menu Foods fights for its life
Menu foods loses largest pet food
customer
Sign up now to
our free animal feed newsletter, click here
