When we first noted a small-ish recall which were recalled yesterday and, at first blush, the alert looks as if it could be as widespread and enormous as the peanut butter recall (mollified a little by the fact peanuts are far more ubiquitous than pistachios). recall of canned pistachios early yesterday, it was limited to Kroger (NYSE: KR) and, frankly, made little in the way of waves. Later, the news began to hearken to the beginning of the peanut recall, in which I wondered how many foods could be impacted (oh, I had no idea!). The pistachio nuts' originator, Setton Pistachio of Terra Bella, Calif., decided to recall its 2008 crop after Kraft (NYSE: KFT) tested some of its pistachio-containing products and found "several types of salmonella." Where the possibly tainted pistachios ended up isn't clear, but Kraft pulled a trail mix with pistachios.

The nuts were sent in 1,000-pound and 2000-pound bags to wholesalers, who then parceled the pistachios further to redistribute them among retailers and manufacturers. As I wrote on DailyFinance, this is yet another example of a food industry that is built on logistics, not food; quality ingredients are marketing, not reality. Neither Kroger nor Kraft nor even (to point a finger at random) Unilever's Haagen-Dazs ice cream can trace to the individual farm the origin of all of their ingredients, no matter how many times the packaging mentions it.

It's further proof that food safety is not truly possible in the industry as it currently stands.

It has not been a good time for me. There is a crisis going on in the Land of Peanut Butter. And if there is one thing I love (besides annual double-digit returns on my stock portfolio), it's peanut butter. You've certainly heard about the concerns regarding some Salmonella-tainted peanut paste. If not, you can check out this piece by Sarah Gilbert. The really bad part is that three deaths are possibly linked to the bacterial infection.

What health officials have advised as of now is to avoid products that use peanut butter as an ingredient. To show how bad this crisis has become, Kellogg (NYSE: K) had to recall some of its products that utilize peanut butter. Naturally, my thoughts eventually turned to Hershey (NYSE: HSY). After all, one of its flagship products is the Reese's Peanut Butter Cup.

Reese's Peanut Butter Cup is one of the best confections known to man, and it is my favorite. Every Halloween I look forward to having an excuse for gorging on the product. So, is the wonderful Reese's brand safe to consume? Just as I thought, Hershey ended up tackling the topic. The company issued a press release on January 17 stating that items from the Reese's portfolio are indeed safe to consume.

Mattel (NYSE: MAT) had trouble with its stock price when lead was found in some of its toys. Now Kellogg (NYSE: K) may have a similar problem. Some of its peanut-based products may be a cause of the spread of a dangerous salmonella. The trouble has been traced to Peanut Corp. of America, a wholesaler and supplier to Kellogg.

Are Kellogg products among those tainted? It is too early to tell, but the fact that it is pulling 16 products off of grocery store shelves may spook shareholders.

Often shareholders consider selling stocks for reasons that are not rational. Since Kellogg is on a list of firms that may have dangerous products, people holding the stock may think it's an unnecessary risk. In the AP story on the deadly outbreak, Kellogg is the only public company mentioned.

The most visible link at the Kellogg website today says "Austin, Famous Amos & Keebler Product Recall."

Fair or not, reasonable or not, Kellogg opens down at the open on Tuesday.

Douglas A. McIntyre is an editor at 247wallst.com.

Peanut butter manufactured at the Blakely, Ga. plant of the Peanut Butter Corporation of America after July 1, 2008, sold under the brand Parnell's Pride and King Nut, is being voluntarily recalled this week due to potential for salmonella poisoning. The peanut butter is sold institutionally and not at the retail level; meaning that tainted product could be in your children's school lunches, in corporate cafeterias, in retirement home dining rooms, or in baked goods and other packaged foods containing peanut butter. One death in Virginia and two deaths in Minnesota are probably tied to the outbreak.

According to the CDC, "This is a complex, widespread outbreak that appears to be ongoing." The outbreak affects 43 states and, because most of the products sold to end consumers are unlabeled (and many of them are sold to the very young and very old, who are both the most susceptible to the disease, and the least likely to critically evaluate the foods they are eating), it could affecting thousands of small businesses and public companies.

This recall, certainly not the first time peanut butter has killed, brings new questions about the safety of all peanut butter products. Is one of America's favorite foods a disastrous choice (and not just for the allergic)? Will major candy makers like Hershey (NYSE: HSY) have to re-evaluate popular peanut-butter based brands? How long will consumers accept such "complex, widespread" deadly diseases before choosing to put the peanut butter sandwiches and peanut butter chocolates back on the shelf?

Oh no, one of my favorite fruits in the world (yes, a tomato is a fruit) is being taken off the shelf for fear of salmonella contamination.

Three types of raw tomatoes -- red plum, red Roma and round red tomatoes -- grown in 17 states are voluntarily being pulled of the shelves and menus of McDonald's (NYSE: MCD), Wal-Mart (NYSE: WMT), Burger King (NYSE: BKC), Kroger (NYSE: KR), Outback Steakhouse, Winn-Dixie (NYSE: WINN) and Taco Bell, among others. In fact, "McDonald's has stopped serving sliced tomatoes on its sandwiches as a precaution, but will continue serving grape tomatoes in its salads because no problems have been linked to that variety."

Similarly, Burger King, Yum Brands Inc. (NYSE: YUM) restaurants, Darden Restaurants (NYSE: DRI), and Chipotle Mexican Grill Inc. (NYSE: CMG) have also removed the contaminated brands from their menus across the U.S., and some, like Burger King, in Canada, Puerto Rico and some other Caribbean islands as well. Many left the non-contaminated brands on the menu.

Tomorrow morning, confectionary company Cadbury Schweppes plc (NYSE: CSG) will update its investors on a slate of issues that range from a spin-off of its U.S. drinks unit to taking austerity measures to cut costs. Cadbury is trying to recover from a salmonella scare last year, declines in its U.K. chocolate market share, and an increase in the cost of raw materials.

An overview of what could be discussed:

• Sale of U.S. drinks business: The company is expected to announce a sale of its U.S. drinks business, which includes 7-Up and Snapple. The New York Times reported that it is currently unclear which bidder is in the lead for the unit - bids came from a group led by Cott, a consortium that included Thomas H. Lee Partners and TPG and a third consortium led by Blackstone Group and KKR. Other possible candidates for the unit could include The Hershey Company (NYSE: HSY) or Tootsie Roll Industries Inc (NYSE: TR), in a deal that could value the unit as high as $16B. Other sources believe Kraft Foods Inc (NYSE: KFT) and Wm. Wrigley Jr. Company (NYSE: WWY) could be potential bidders; Kraft, JP Morgan believes, would have an edge over Wrigley due to greater funding, flexibility and synergies.

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?

While preschool was difficult for my son, who just doesn't like playing according to a schedule, I can gratefully point to one rule I needed help reinforcing: washing his hands. Like all the rest of the kids, he was required to wash hands after going to the potty and before eating snacks.

Clearly, the food workers of America did not learn this lesson.

Salmonella can infect a food in two ways: (1) if the raw meat or uncooked eggs from an infected chicken or other animal is ingested (either by eating raw food or by contaminating other foods with chicken juices, etc.) or (2) a human's feces come into contact with food. Because someone didn't wash his hands after using the potty. The CDC says the source of contamination is "still under investigation," but as this is the first-ever peanut butter contamination I'm just going to go out on a limb and say "human feces."

Peter Pan and Great Value peanut butter products (starting with code 2111) have been recalled by ConAgra Foods, Inc. (NYSE:CAG), thanks to a salmonella outbreak. I'm sure the parents who just sent their children to school with peanut butter and jelly sandwiches told them to wash their hands before lunch.

It's not like this is the first time this has happened, even in the past few months.

ConAgra Foods Inc. (NYSE:CAG) is advising consumers to destroy any Peter Pan or Great Value peanut butter with a product code 2111 amid concerns about possible salmonella contamination.

There have been 300 cases in 39 states since August linked to tainted peanut butter, according to the , Associated Press, adding that it's the first time that peanut butter has been linked to this illness. About 20 percent of the people with the infection have been hospitalized and none thank goodness has died.

ConAgra, which hasn't found any problems with its products, is working with government officials and will take any additional measures that are needed, the wire service said. The affected peanut butter came from a plant in Sylvester, Georgia, according to the FDA.

Consumers can call a 24-hour hotline at 866-344-6970 with any questions or concerns.

What should investors do? Absolutely nothing.

Food companies, particularly large ones like ConAgra, are well-prepared to face these sorts of situations. The Omaha-based company isn't panicking and neither should shareholders.