Showing posts with label food safety issues. Show all posts
Showing posts with label food safety issues. Show all posts

Wednesday, April 8, 2009

Food Safety: FDA Expanding Recall of Pistachio Nuts From Setton Pistachio of Terra Bella Nut Processing Company


In this piece [Tesco's Fresh & Easy Recalling Chili Lemon Pistachio Nuts as part of FDA's Setton Farms-Terra Bella Salmonella Recall] in Fresh & Easy Buzz yesterday about Tesco Fresh & Easy Neighborhood Market's recall of its fresh & easy brand chili lemon pistachio nuts, we wrote that the pistachio nut recall regarding possible salmonella contamination linked to pistachios processed by Setton Pistachio of Terra Bella was far from over; that we expected numerous more product recalls of the nuts by more retailers and distributors.

It appears we were correct in our assessment yesterday.

Today the U.S. Food & Drug Administration (FDA) and the nut processing company are saying they have expanded the recall of pistachio nuts processed by Setton Pistachio of Terra Bella, the second largest pistachio nut processor in the U.S., because of increased and continued concerns over salmonella contamination in the nuts.

The nut processor had originally recalled all of its pistachio nuts harvested and processed during September 2008 at its San Joaquin Valley plant in California. According to the FDA, the company has now recalled all of the pistachio nuts processed at its plants for the entire year of 2008, except for raw in-shell pistachios. Most pistachio nuts sold in stores are roasted. Most pistachios used in food products also are roasted.

As a result, retailers, distributors and consumers are in for additional product recalls because of the expanded scope (all of 2008) of the pistachio recall.

The non-profit consumer watchdog group Science in the Public Interest said this morning it expects the expanded pistachio recall to be similar in scale to the recent, and still not over, peanut product recall over the salmonella issue.

"This is going to resemble the peanut recall in that products are going to be added every day as companies discover they used Setton pistachios," Caroline Smith DeWaal of the Center for Science in the Public Interest said today. "It's going to take a while for the dust to settle."

U.S. consumer concern over the pistachio nut recall is reflected in the graph above captured today from Google Trends. (View the top line titled "search volume index"). Note the spike of Google searches using the search term "pistachio nuts." We expect another huge spike as the news gets out about the expanded recall of the nuts processed at Setton Pistachio. The bottom graph measures news reference volume for the search term "pistachio nuts."

In addition to being sold as snack nuts, pistachios are also used in various food products -- pistachio-flavored ice cream, puddings and the like. Unlike peanuts though, pistachios are much more of a niche crop and product in the U.S.

Products are still being recalled from retail stores that contain peanuts or peanut paste produced by the Peanut Corp. of America, the processor identified by the FDA as the source of the salmonella outbreak this year that sickened about 700 people.

The good news at present is that their have been no reported illnesses from pistachio nuts processed at Setton Pistachio or elsewhere.

The salmonella was first discovered in pistachios processed by Setton Pistachio by a food company that spot tested the nuts after buying them from the pistachio processing company.

The FDA was then called in. During an inspection of the processing plant the FDA found that Setton Pistachio of Terra Bella was processing raw and roasted pistachios on the same production lines without adequate cleaning between uses, according to David Acheson, the FDA's associate commissioner for foods."

Such a practice has the potential for salmonella contamination.

FDA and state inspectors then found salmonella in the Setton Pistachio plant, including directly on the machines on the pistachio nut production line.

The FDA said this morning it is asking retailers not to sell and consumers not to eat any pistachio nuts or food products that contain the nuts unless the agency can confirm the pistachios don't come from Setton Farm of Terra Bella.

It's possible that the pistachio recall could spread outside of the U.S. because Setton Pistachio is an exporter of pistachios, along with being a domestic processors and seller of the nuts.

Besides selling its pistachios processed in 2008 to food companies and marketers in the U.S., Setton Pistachio also sold the nuts to companies in Canada, Korea, Hong Kong, Germany, Australia, Switzerland, the United Kingdom, France, Cyprus, Greece, Lebanon, Norway, Ukraine and Ecuador.

It would seem logical that since the FDA is now expanding the recall to all of the 2008 pistachios, except the whole, raw varieties, that nuts sold by Setton Pistachio to companies in these countries also would be recalled.

The expanded pistachio recall comes on the heels of what seems like back to back recalls over salmonella contamination over the last few years. There were tomatoes, peppers and leafy greens, in the fresh produce segment. And of course the massive peanut butter product recall over salmonella, which continues.

The FDA under President Barack Obama has vowed to improve its regulation of food safety in the U.S. However, were it not for the private company spot testing the pistachios it bought from Setton Pistachio, it's likely the FDA might not have discovered the salmonella contamination in the Setton Pistachio processing plant.

The Obama Administration and Congress have appropriated more money to the FDA to beef up its food safety enforcement activity.

In addition, food and grocery industry trade groups like FMI (Food Marketing Institute) and GMA (Grocery Manufacturers' of America) are calling for even more funding for the FDA, as well as encouraging the agency to enact more stringent food safety regulations on both domestic-produced and imported foods.

You know that when an industry asks the government to regulate it even more that there's a serious and real problem.

Perhaps the current pistachio nut recall, on the heels of the peanut product recall, will serve as the catalyst for a wholesale revamping at FDA, particularly when it comes to food safety.

There appears to be a bipartisan political, as well as food industry, consensus that more funding for the FDA is needed. The question is if the food safety problems are more extensive than increased funding and enforcement will be able to solve? Increased effort and time will tell.

Note: The non-profit consumer group Science in the Public Interest is urging the FDA to change its basic food safety policy. Read what the group is suggesting here: [Pistachio Recall Shows FDA Needs to Shift from Voluntary Guidance... ...]

[You can follow Fresh & Easy Buzz around on Twitter.com at www/twitter.com/freshneasybuzz.]

Tuesday, April 7, 2009

Tesco's Fresh & Easy Recalling Chili Lemon Pistachio Nuts as part of FDA's Setton Farms-Terra Bella Salmonella Recall


Food Safety Issues

Tesco's Fresh & Easy Neighborhood Market is recalling all date codes of its fresh & easy brand chili lemon flavored pistachio nuts as part of the current salmonella contamination product recall of nuts processed by Setton Pistachio of Terra Bella Inc., according to the grocer and the U.S. Food & Drug Administration (FDA). The product package label is pictured above.

No illnesses have been reported to date from the pistachio nuts purchased at the Fresh & Easy stores in California (Southern and Bakersfield), southern Nevada and Metropolitan Phoenix, Arizona.

Tesco's Fresh & Easy Neighborhood Market says it pulled the product from its stores' shelves as a precaution pending the outcome of the current FDA and California Department of Public Health investigation into Setton Farms/Terra Bella.

The fresh & easy chili lemon pistachio nut product is the only fresh & easy brand product that contains pistachio nuts from Setton Farms/Terra Bella, according to the retailer.

Below are the specifics of the item being recalled:

Product Description
fresh & easy brand chili lemon flavored pistachios - all code dates

UPC Code
5051379000486

Customers may return the empty product container or the receipt to any Fresh & Easy store for a full refund, Tesco's Fresh & Easy says. In addition, consumers who have questions or concerns about this recall should contact the Fresh & Easy 24-hour toll free number 1 (800) 648-8622.

Salmonella is an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems, according to the FDA.

Healthy persons infected with Salmonella often experience fever, diarrhea (which may be bloody), nausea, vomiting and abdominal pain. In rare circumstances, infection with Salmonella can result in the organism getting into the bloodstream and producing more severe illnesses such as arterial infections (i.e., infected aneurysms), endocarditis and arthritis.

The Tesco Fresh & Easy recall comes on the heels of similar pistachio nut product recalls by grocers with stores in California, Nevada and Arizona such as Whole Foods Market, Inc. and numerous others, as well as by distributors to retailers of pistachio nuts and products containing pistachios processed by Setton Farms/Terra Bella.

The FDA has set up a Web site with regularly updated information about pistachio nut product recalls and related issues. Link: http://www.fda.gov/pistachios.

California-based snack food distributor Energy Club, which sells snack food products to numerous Western U.S. supermarkets, grocery stores and convenience stores, also is recalling a number of packaged pistachio nut products.

You can view a list of those specific items here.

We expect additional retailers and distributors to be recalling pistachio nut products in the coming days.

Pistachio nuts are a niche crop in the U.S. As a result there are only a handful of companies that process and sell the nuts. Setton Farms/Terra Bella, the owner of two plants the FDA has found some salmonella-contaminated pistachio nuts at, is one of the largest of those processors and sellers of pistachios in the U.S.

It takes time to track all of the various products out in the marketplace processed from a single company like Setton Farms/Terra Bella, since it is a major distributor of the the nuts.

The good news so far though is that it's the only company identified with processing pistachios found to contain salmonella. That will make isolating all of the products currently out in the market and in distributor and grocer warehouses much easier.
[You can follow Fresh & Easy Buzz around on Twitter.com at www.twitter.com/freshneasybuzz.]

Wednesday, April 9, 2008

UK Blogger Offers a British Independent Retailer's Opinion on Our Monday, April 7 Analysis of the Mercury News' Tesco UK Spoiled Foods Story of Old


Not too long ago we posted a piece written by West Sussex, United Kingdom-based local Postmaster and independent retailer Steve, who publishes the Village Counter Talk blog out of his retail store in that English village.

The Village Counter Talk writer, blogger, Postmaster and independent retailer read our piece published Monday about the San Jose, California Mercury News' running a story in that days edition of the publication about concerns local residents in a San Jose neighborhood are having about two Fresh & Easy Neighborhood Market small-format grocery stores coming to the area early next year.

That concern reported in the Mercury News involves a past situation in the UK in which Tesco sold some food products which were either out-of-code, spoiled or both. At the time Tesco dealt with the matter, which generated lots of press in the UK, and announced it had solved the problem.

Additionally, a spokesperson for Tesco's USA Fresh & Easy Neighborhood Markets told the Mercury News reporter, and she quoted him in her story, that Fresh & Easy has no such problems in the U.S. and is following U.S. food safety guidelines to the letter.

In our piece here, we commented that the Tesco selling of out-of-code and/or spoiled food story was rather old, although the reports at the time didn't appear in U.S. newspapers.

Further, we mentioned in our piece that to our knowledge, there has not been one consumer report--or one suggestion by any of the health departments in the western U.S. regions where Tesco is currently operating its 61 Fresh & Easy stores--that the grocery chain has or has had any out-of-code or spoiled food problems in any of its stores.

However, in our analysis we said the important aspect of the story is that the story ran at all. In other words, it's all about perception. Once something is perceieved to be the case, it becomes reality to people, even if not objectively true.

Since the Tesco UK story is brand new to probably 99.9% of the people who will read the Mercury News piece, and since the story obviously relates Fresh & Easy to its parent Tesco, we believe many readers will perceive that there just might be a food safety issue at the USA Fresh & Easy stores after reading it.

Consumer concerns about the safety of the food they purchase from grocery stores is a serious issue in the U.S. For example, a 2007 national survey (see the graphic at top of this piece) conducted by the Food Safety Policy Center at Michigan State University, found 33% of 1,200 consumers surveyed (a scientific random sample), are "very concerned" about food safety issues.

Additionally, another 30% said they are "fairly concerned" about the safety of the food they purchase. That adds up to 63% of the survey respondents expressing food safety concerns about the food products they buy in America's supermarkets and other retail venues. Only 34% of those surveyed in the study said they are "not at all concerned" about the safety of they food they buy, with just 3% saying they "aren't too concerned."

Most retailers are aware of this level of food safety concern among American consumers, and in recent years have created new and better programs and operational procedures to better ensure food safety from the supply chain to the store.

In our piece Monday, we strongly suggested that if we were running Fresh & Easy, we would get out in front of this story fast. [We haven't found or read any response from Tesco or Fresh & Easy to Monday's Mercury News thus far.]

Lastly, in our analysis of the Mercury News story, we talked about a practice Tesco is currently doing in many of its Fresh & Easy stores in Southern California, Arizona and Nevada that we believe is "rolling the dice" in terms of creating potential (and even perceptual) food safety concerns and issues.

This practice is the marking-down of fresh foods as they start to reach their package-printed expiration dates. Fresh & Easy is marking these near-out-of-code fresh foods items down on a regular basis by as much as 50% in many of its small-format, convenience-oriented grocery stores. [Read our analysis of that practice here.]

Independent retailer and blogger Steve, who writes the Village Counter Talk blog from his base in the UK and has observed Tesco there for years, read our Monday piece and decided to offer some commentary on it, and the issue, in a blog post earlier today.

Monday, April 7, 2008

San Jose Mercury News Reports on Tesco's Past Spoiled Food Problem in the UK; Relates it to Fresh & Easy: F&E Better Get in Front of This Story Fast


It's far from "fresh" news that Tesco had a problem in the past with the health authorities in the United Kingdom (UK) because some of its stores there were selling out-of-code and spoiled food products. We've mentioned it recently in Fresh & Easy Buzz in relation to some organizing the United Food & Commercial Workers (retail clerks) union has been doing in Southern California.

A couple weeks ago the UFCW union mass-mailed fliers to residents in a number of Southern California neighborhoods where Tesco has its Fresh & Easy grocery stores. The fliers quoted union retail meat specialists who work at various union shop supermarkets in Southern California as saying they are very concerned about Fresh & Easy's fresh foods handling policies.

Along with these "first-person" quotes, the UFCW fliers had information from UK publications about the stores in the UK that sold the out-of-date or spoiled fresh foods. Tesco settled the matter and says it has solved that problem in those UK stores where it occurred.

There have been no reported incidents by consumers or county health departments in the western U.S. states and counties--California (Southern), the Phoenix Metro region in Arizona and Metro Las Vegas, Nevada--where Tesco has its 61 Fresh & Easy grocery markets that we are aware of.

The News is really that a major U.S. paper is running the story.

Despite the fact there have been no reports to our knowledge about the selling of any spoiled or out-of-code fresh (or any other) food products at the Fresh & Easy stores, the fact that the San Jose Mercury News--which has the second-largest circulation after the San Francisco Chronicle in Northern California's Bay Area, along with having a somewhat national (and even international) readership because of the world-wide web--ran the story is news in itself (or should be) vis-a-vis Tesco and its Fresh & Easy retail operation.

Tesco should have a press release, with a statement from CEO Tim Mason, on the news wires by midnight tonight. That gives them three hours (their west coast time) as we write this.

The Mercury News story has a statement from Fresh & Easy's spokesman, which is good for the retailer. However, it isn't enough. A smart and savvy grocery retailer--especially being a start-up in the USA even though its the world's third-largest international retailer--needs to respond to such a story fast--and with authority.

That authority can only come from the CEO. If this story were written about Safeway Stores, Inc. for example, they also would have their vice president for food safety, something every major grocery chain should have, respond in a statement as well as the company's CEO. They did this rather effectively years ago when there was a spate of food safety scares in the U.S. supermarket industry.

Fresh & Easy is rolling the dice with its fresh foods markdowns

Tesco also should be very careful with a practice it started (and continues today) in its Fresh & Easy grocery stores some time back. That practice, which we've written about before, is the marking-down of fresh foods' items like prepared foods, meats and produce by up to 50% shortly before the items are set to go out-of-code. The Fresh & Easy stores are doing this daily, some more than others obviously. It's a lack of sales problem, as well as a fresh foods logistical one, as we've previously written.

There is a reason major U.S. supermarket chains don't do markdowns like Fresh & Easy is doing on a scale any larger than with a few fresh meat items, and that's on a store-by-store basis. Further, since the vast majority (about 99.7%) of U.S. supermarkets sell produce in bulk, rather than packaged with code dates on it like Fresh & Easy does, it isn't even a issue in terms of markdowns for the industry.

You never see a major U.S. supermarket chain of any significance do such markdowns for quick sales of perishable products like prepared foods entrees, ready-to-consume foods, dairy products and the like. As we said, the behavior is limited primarily to fresh meat items; and done well-before the code dates on the packages expire. Many major U.S. chains don't even allow store-level meat managers to markdown fresh meat items. Rather, they have a chainwide policy against any markdowns.

Why don't major U.S. supermarkets do this perishable and fresh foods markdown behavior rather than "eat" the loss? It's simple: they don't even want to come close to taking a risk of having a food safety problem or issue.

The amount of money saved by marking a fresh foods product down and selling it for 50% off, even for a chain like Safeway which has 1,700 stores in the U.S. (compared to Fresh & Easy's 61), pales compared to the potential sales losses (not to mention the potential long-term reputation and retail brand damage) that comes from a food safety issue, such as a consumer getting sick from one of the 50% off fresh foods items they purchased at a store marking such items down for quick sale. [Read the March 23 piece we wrote here about Fresh & Easy's fresh foods markdown program. Just scroll down a bit on the linked page to read it.]

Revolutionary operations and merchandising programs implemented by supermarket chains of any kind which are doing business for the first time in the U.S. should in our opinion be focused on the sales-increase side of the ledger--great formats, exciting promotions, award-winning consumer marketing campaigns, for example--rather than in finding ways to squeeze out a little less dollar loss by doing things long-established grocery chains don't do in the U.S., like marking down fresh foods' products on a regular basis as a matter of policy.

As you can see from our brief explanation, there's a good reason why these U.S. chains don't do it.

Fresh & Easy Neighborhood market hasn't had one reported incident of a consumer's complaining about or getting sick from purchasing out-of-date or spoiled foods in its stores to our knowledge, as we've said. Further, no government entity has suggested the chain has done this to our knowledge.

In fact, the story in the Mercury News merely says some people are worried about stores Fresh & Easy will open in San Jose at the end of this year or early next year because of the spoiled foods' issue Tesco had in the UK. There is absolutely no assertion that Fresh & Easy sells spoiled fresh foods that we can discern from the story.

However, perception is reality. And consumers reading the paper's story will draw their own conclusions as people do. (We aren't suggesting the Mercury News shouldn't have ran the piece, by the way. That's there editorial call completely.)

Were we running Tesco, we would be having our PR department, with input from F&E CEO Mason and others, at their computers right now, crafting a statement with assurances from the CEO that Fresh & Easy's food safety standards are impeccable, if that is the case. That statement would be in the email boxes of every newspaper in America, and on the PR news release wires, by 7am tomorrow morning. Perception is reality.

Stories involving any aspect of food safety--even when nothing material exists as is the case with the Fresh & Easy stores--need to be got in front of, especially when they appear in a major metropolitan daily newspaper in a state where a retailer not only has based its corporate headquarters but has the greatest number of its grocery stores as well. That is the case on both counts for Tesco's Fresh & Easy in California.