ConAgra Foods resumes production of pot pies after recall; sees 2Q charge

ConAgra Foods resumes production of pot pies after recall; sees 2Q charge

	Published : Wed, 14 Nov 2007 23:17 By : Agencies Print this Story

SAN FRANCISCO (Thomson Financial) - ConAgra Foods Inc. after Wednesday's closing bell said it has resumed production of its Banquet and private-label pot pies, after recalling them on Oct. 11 due to concerns regarding salmonella.

Shipment of the pot pies, which are produced at the company's Marshall, Mo., plant is expected to begin in December.

The Omaha Neb.-based packaged-food company said it expects incremental costs related to the recall of $30 million, or about 4 cents a share, most of which will be recorded in its fiscal second-quarter results.

ConAgra also said it worked closely with the Department of Agriculture to pursue the likely source of the investigation.

Environmental testing of the Marshall pot-pie production area showed no traces of salmonella, according to initial findings, the company said. The specific salmonella strain appeared to be isolated to Banquet turkey pot pies produced on July 13 and July 31, based on the state findings.

The company said it has developed enhanced protocols for its ready-to-cook manufacturing plants to further ensure food safety going forward. The new guidelines include more stringent testing protocols for ingredients coming into plants, and further testing of finished products, the company said.

'We apologize to any consumer who became ill from eating any of our pot pies,' said ConAgra Chief Executive Gary Rodkin in a statement. 'Any lapse in the safety of our food is unacceptable, and I know the steps we have taken will make a positive difference and help us provide consumers and customers with safe, wholesome products.'

ConAgra shares closed the regular session up a penny at $23.44.

Katherine Hunt

kh/gm

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.