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Kellogg pulls crackers as peanut butter recall hits manufacturers

When I wrote yesterday about the recall of peanut butter due to salmonella poisoning (which is now considered possibly responsible for five adults' deaths), I worried that the "complex" and "widespread" description of the outbreak by the CDC could mean that, not only was the institutional peanut butter spread to thousands of school and corporate cafeterias, but also, the peanut butter might be in other products. Today's move by Kellogg (NYSE: K) to voluntarily pull Keebler and Austin peanut butter crackers off retailers' shelves says to me that we could have no idea how "complex" and "widespread" this disease might be. Kellogg will be investigating to see if its products include tainted peanut butter.

Kellogg products included in the investigation include peanut butter sandwich crackers, peanut butter and jelly sandwich crackers, cheese and peanut butter sandwich crackers, and peanut butter-chocolate sandwich crackers. Kellogg stock was down about 60 cents on the news, to $42.07 as of 1 p.m.

'Green' moms are calling the move by Kellogg a good one; but, as it's only removing items from shelves and not a recall (and is only one company when it could be many more which are affected by the tainted peanut butter), perhaps it doesn't go far enough. Part of the complication: Austin peanut butter crackers are sold in vending machines and small, independent convenience stores, among other places, making their removal fraught with mechanical and communication problems. And my money says more companies will soon follow suit and pull peanut butter off the market.

Peanut butter sickness still coming: Peter Pan, Great Value salmonella cases top 600, would you eat it again?

Peanut butter manufactured under the "Peter Pan" and "Great Value" brands with the product code 2111 by ConAgra Foods (NYSE: CAG) is still making people sick, according to the latest report by the Centers for Disease Control. Although the entire batch of tainted peanut butter has long been pulled from store shelves, it's difficult to remove from consumer's shelves (especially as the two-dollar refund isn't exactly a money-maker). And processed peanut butter (as we well know) seems to last forever; I wouldn't be surprised if first-graders are still toting contaminated sandwiches to school in their lunchboxes next fall.

So as my college track buddy Josephine always said around October when the sniffles would break out around the locker room, "sickness is coming." Sickness is still coming, and likely will continue for some time; 628 cases in a whopping 47 of our 50 U.S. states have been reported, with more than 200 new since March when the CDC last reported (the peanut butter recall was announced in mid-February 2007).

ConAgra won't be producing peanut butter from its Sylvester, Ga. plant again for a while, as renovations to fix the moisture problems blamed for the contamination are still underway; but the company will reintroduce its Peter Pan brand in July. But with customers still sickening, will anyone go back? Would you eat Peter Pan peanut butter again?

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Last updated: February 12, 2012: 06:09 AM

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