Consumers are becoming more and more conscious about the
nutritional content of packaged foods. Any form of storage problem
can either cause the nutritional benefit of the food to degrade or
contaminate it causing serious illness.
Kraft Foods Group Inc.
) has always played safe with its food making process and has
recalled its products many times in case it had any doubt with
Kraft Foods recently recalled 1.2 million cases of select
cottage cheese products due to potential storage defects. The
company doubts that some ingredients used in the products were not
stored as per Kraft storage standards. This could lead to spoilage
of these products and cause several food borne diseases, if
consumed. The cases recalled have codes dated from May 9, 2014
through Jul 23, 2014 and have only been shipped within the United
The recalled cottage cheese products include brands like Knudsen
Cottage Cheese, Breakstone's Cottage Cheese, SimplyKraft Cottage
Cheese and DailyChef Cottage Cheese. Kraft Foods will fully refund
consumers once they return the products which match the codes to
their original stores of purchase. Following the recall, the
Tulare, CA facility, which manufactured all these products, has
Kraft's cottage cheese recall comes a month after it issued a
recall for 96,000 pounds of Oscar Mayer Classic Wieners products.
According to the U.S. Department of Agriculture's Food Safety and
Inspection Service, the recall was due to wrong packaging and
undeclared allergen. Earlier, in Jan 2014, Kraft recalled 1.77
million pounds of Kraft Velveeta Cheesy skilled single - macaroni
and cheese products - because of incorrect labeling.
In Oct 2013, Kraft Foods voluntarily recalled some varieties of
Kraft and Polly-O String Cheese and String Cheese Twists products
on concerns that they could degrade before their 'Best When Used
by' dates specified on the labels.
The repeated recalls are not good for Kraft's fundamentals.
These recalls have a negative impact on the company's
The Zacks Rank #4 (Sell) company has been struggling with its
top line ever since the split from
Mondelez International Inc.
) due to broader macro pressures. Other food companies that have
been struggling with the top line for the past few quarters are
General Mills, Inc.
). Both these companies' sales have been hurt by their choppy
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