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TORONTO, ONTARIO--(CCNMatthews
- March 16, 2007) -
NOT FOR RELEASE OVER US NEWSWIRE SERVICES
Attention Business/Financial Editors
Menu Foods Income Fund (the "Fund") (TSX:MEW.UN)
today announced the precautionary recall of a portion of the dog and cat
food it manufactured between December 3, 2006 and March 6, 2007. The recall
is limited to "cuts and gravy" style pet food in cans and pouches
manufactured at two of the Fund's United States facilities. These
products are both manufactured and sold under private-label and are
contract-manufactured for some national brands.
Over the past several days, the Fund has received feedback in the United States (none in Canada)
raising concerns about pet food manufactured since early December, and its
impact on the renal health of the pets consuming the products. Shortly
after receipt of the first complaint, the Fund initiated a substantial
battery of technical tests, conducted by both internal and external
specialists, but has failed to identify any issues with the products in
question. The Fund has, however, discovered that timing of the production
associated with these complaints, coincides with the introduction of an
ingredient from a new supplier. The Fund stopped using this ingredient
shortly after this discovery and production since then has been undertaken
using ingredients from another source.
At the same time, the Fund's largest customer, for which it manufactures on
a contract basis, received a small number of consumer complaints and has
initiated its own recall. Furthermore, for the time being, the customer has
put future orders for cuts and gravy products on hold. This customer's cuts
and gravy purchases in 2006 represented approximately 11% of the Fund's
annual revenue.
"We take these complaints very seriously and, while we are still
looking for a specific cause, we are acting to err on the side of
caution" said Paul K. Henderson, President and CEO, Menu Foods.
"We will do whatever is necessary to ensure that our products maintain
the very highest quality standards."
While the number of complaints has been relatively small, Menu is taking
this proactive step out of an abundance of caution, because the health and
well-being of pets is paramount to the Fund.
In addition to changing suppliers, for production after March 6, the Fund
has increased testing of all raw materials and finished goods. It is also
working closely with regulatory authorities and its customers to learn more
and will take whatever additional actions are appropriate. The Fund
estimates that based on currently available information, this recall could
cost between $30 million and $40 million, which will be financed from a
combination of internally generated cash flow and bank credit facilities.
Furthermore, the Fund is aggressively producing product, utilizing a
different supplier for the ingredient in question, to replenish customers
as quickly as possible.
In order to determine whether cat and dog food in their possession is
subject to recall, consumers should refer to the list of brand names
("listed products") at www.menufoods.com/recall.
This will be available by 6 a.m. Saturday March 17, 2007. Products not
identified on the website can continue to be used.
Menu is the leading North American private-label/contract manufacturer of
wet pet food products sold by supermarket retailers, mass merchandisers,
pet specialty retailers and other retail and wholesale outlets. In 2006,
the Fund produced more than one billion containers.
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