Product recall on Listeria outbreak send Greenyard's stock reeling

Greenyard NV

16/07/2018 09:15

** Belgian frozen foods co Greenyard  GREENY.BR  plunges 38%
to six-yr low and is on track for its worst day since going
public in 1999
    ** The move comes on top of a 10% slide on Friday (before
being halted), when media reported that listeria-related deaths
in Europe were potentially linked to frozen vegetable products
produced by co's Hungary plant
    ** Berenberg says food safety is the biggest risk for a food
company, and "this is the latest in a string of disappointing
newsflow relating to Greenyard"
    ** Co says on June 29, the Hungarian Food Safety Authority
issued a resolution to stop all marketing and to recall from its
all frozen products produced in the Hungary plant
    ** Kepler Cheuvreux says direct financial impact is expected
to be manageable given it insured for all recall costs and
possible product liability damages
    ** The brokerage adds that the biggest question remains how
Europe-wide news coverage associating Greenyard and its flagship
brand Pinguin with food safety issues will affect consumer
decisions and price negotiations with retailers - Kepler
    

 (Thyagaraju Adinarayan)
 ((thyagaraju.adinarayan@tr.com; Twitter @thyagu))