Here’s a predictable progression: products linked to 34 illnesses, shares tank, can’t sell your berries, get out of the berries biz.
According to Business Insider Australia Patties Foods has sold its frozen berries business to Entyce Food Ingredients for an undisclosed sum.
The company says the funds from the sale would generate $1.8 million, a sum which is unlikely to affect its fiscal 2016 results.
Its net profit after tax was down from $16.7 million to just $2.1 million.
At the time of the outbreak, the company’s shares tanked 6.5% to $1.28.
Before the recall, the berries business generated 13% of Patties’ sales.
Checking into your suppliers matters when you sell an uncooked product.