Just think…
If Menu Foods had handled the initial news of the pet food recall a bit better (ie, informing customers that there was a problem, and pulling all of their products immediately), they wouldn't be in this position now would they? Oh sure, they would still be losing money, but I think customer confidence wouldn't have dropped so low if they had been more concerned with the animals than their bottom line when they first became aware there was a problem.
Menu Foods Income Fund, still struggling with the fallout from its massive recall of tainted pet food, posted a third-quarter loss Wednesday and said that customers who accounted for more than a third of its sales in 2006 will no longer do business with the company.
Menu said it lost $19.3-million, or $1.01 a unit, in the third quarter ended Sept. 30. That compared with a profit of $1.3-million, or 7 cents a unit, in the same period a year earlier.
Revenue fell to $78.1-million from $90.1-million a year earlier, and the company's forecast was bleak.
"The fund has been informed that customers whose volume represented approximately 37 per cent of sales in 2006 will no longer be purchasing these products from Menu," the company said. "The effects of this lost business will be felt over time."
As well, customers whose 2006 volumes accounted for almost 14 per cent of sales "have already stopped doing business with Menu," it said.
Menu's recall, first announced in March, has been expanded several times
Companies responsible for 14 percent of their sales have already stopped doing business with them and an additional 37 percent say they wont be back. Can the company survive with just 49% of the business they had in 2006?
It's been 242 days since they informed their investors that there was a problem. That press release was clearly marked, "NOT FOR RELEASE OVER US NEWSWIRE SERVICES".
Any idea that they actually cared about what was happening to the animals who ate their products is insane. They didn't care then, and it's clear, based on their customers still leaving in droves, they don't care now.
Will Menu Foods be forced into bankruptcy because of this? I really don't care. It's not about them, it's about the thousands of pets that have been lost because of the tainted product.
Chip Flowers
The way I see it all these companies care about is how much profit they will be making in the end. if it makes them more potential money to avoid lawsuits and have a recall they'll do it, but they don't care about our pets's well being. Thats sad!
Comment by latino t-shirts on Nov 16th, 2007 @ 15:05