Jeno’s and Totinto’s Pizza Recall Has General Mills Counting Its Losses

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Jeno’s and Totinto’s Pizza Recall Has General Mills Counting Its Losses

December 27th, 2007 amy

After recalling over 400,000 pizzas for potential E. coli contamination in November, General Mills is now reporting a second quarter loss of $20 million on its operating report. Tonitno’s and Jeno’s pepperoni pizzas were found to be potentially contaminated with E. coli 0157:H7 by federal and state authorities investigating 21 related illnesses spanning 10 states. General Mills said nine of the 21 people reported having eaten Totino’s or Jeno’s pizza with pepperoni topping at some point before becoming ill. All have recovered, but some were hospitalized. Higher input and commodity expenses, in addition to the E. coli outbreak, had a negative impact on margins, together swelling the cost of sales to $2.3 billion, a 7.8 per cent increase from the same period in 2006.

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