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From the blogs: General Mills CEO is asked about food safety

April 9, 2016 at 4:14AM
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THE MILL

General Mills CEO is asked about food safety

Is cost cutting in the food industry posing a risk to food safety?

That was a question posed to General Mills CEO Ken Powell during a recent earnings conference call by Eric Katzman, a stock analyst at Deutsche Bank.

With sales growth being squeezed across the packaged food industry, General Mills and a host of other companies have significantly cut costs to maintain profit margins.

"I've heard from a number of other CEOS, both currently in the industry and formerly in the industry, who are getting more concerned about the pressure to cut costs and the risks to food safety and quality," Katzman said.

"You guys (General Mills) have done a very good job over time, but even you had a recall earlier," he said in reference to an October recall of 1.8 million boxes of gluten-free Cheerios and Honey Nut Cheerios because they accidentally contained wheat.

Powell replied that the company is "very focused on product safety and product quality. It's central to our mission. … Consumer trust is job one for us."

Indeed, recalls are expensive, while large outbreaks of foodborne illness can batter a company's reputation.

Recalls made in conjunction with the U.S. Food and Drug Administration (FDA) have been rising in recent years. In the FDA's fiscal year ending Sept. 30, there were 3,265 food- and cosmetic-related recalls, up from 2,549 and 1,777 in the two previous fiscal years.

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More recent data aren't available, but the past two months have been rife with recalls related to the elemental task of keeping packaged food free of foreign matter.

Snyder's-Lance, a big snack-food maker, recalled some of its Emerald brand snack packs of cashews because of possible glass contamination. Nestlé recalled some of its Lean Cuisine and Stouffer's frozen meals, as well as DiGiorno frozen pizza. Errant glass was to blame there, too.

Closer to home, Austin-based Hormel Foods recalled 450 pounds of Dinty Moore stew due to possible contamination with pieces of a broken flashlight. And Hormel's Applegate Farms division recalled 9,000 packages of chicken nuggets after some consumers found pieces of plastic in the product.

MIKE HUGHLETT

POINT OF SALE

Whiskey popularity evident in ticket sales

With more than 280 whiskeys to sample during the second annual Whiskey on Ice in Minneapolis on Sunday at the Depot, founder Mat Garretson calls it "more whiskeys that can be responsibly tasted."

Sales of the $85 tickets to the event from 5 to 8 p.m. are up 30 percent, Garretson said.

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U.S. revenue for bourbon, Tennessee whiskey and rye whiskey gained nearly 8 percent in 2015 to $2.9 billion, according to the Distilled Spirits Council.

JOHN EWOLDT

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