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Case Code: CLBE012
Case Length: 4 pages 
Period: -  
Pub Date: 2008
Teaching Note: Not Available
Subject : Business Ethics
Price:Rs.100
Organization :--
Industry : FMCG
Countries : --

Cadbury's Hit by Salmonella Scare in the UK*

 

ABSTRACT

Cadbury Schweppes PLC announced a recall of one million chocolate bars from markets in the UK and Ireland. This was due to salmonella contamination, which could cause food poisoning. The recall was expected to result in increased costs, loss of sales and threat from competitors like Nestle. The company's crisis management steps were also criticized.
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Introduction
On June 23, 2006, Cadbury Schweppes PLC (Cadbury), the world's leading confectionery company, announced a recall of one million chocolate bars spanning seven product lines from markets in the UK and Ireland.

In a press release, Cadbury mentioned that this was being done as a precautionary measure after traces of Salmonella Montevideo were found in some of the product samples.

Simon Baldry, Managing Director of Cadbury UK, said, "We've been making chocolate for over 100 years and quality has always come first. We have taken this precautionary step because our consumers are our highest priority. We apologize for any inconvenience caused."

However, reports indicated that Cadbury had recalled its products after being forced to do so by the Food Standards Agency (FSA)...

Keywords

Cadbury, Salmonella Scare, Cadbury Schweppes PLC, confectionery company, chocolate bars, markets, Salmonella Montevideo, Simon Baldry, consumers, Food Standards Agency, FSA, Marlbrook plant, Food Safety Act, Matthew Shattock, bacteria, ready-to-eat foods, The Health Protection Agency, HPA, Professor Hugh Pennington, JP Morgan, The Canadian Food Inspection Agency, manufacture, ads, long-standing sponsorship, Nestle, Master Foods, Andrew Tector



* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.