Tuesday, October 9, 2007
Just days after announcing a massive e. Coli-based recall (and contemporaneously with some of the first lawsuits being filed), Topps Meat Co. is closing up shop. The Chicago Tribune article suggests that the biggest financial concern for Topps was the expenses of the recall itself and of implementing more processes for avoiding future bacterial problems; lawyers are mentioned, but only down the line a bit.
After an infamous 1993 E. coli outbreak, the beef industry learned that investments in quality control pay off. Nowadays, meat companies spend millions of dollars annually on safety measures to fend off the deadly bacteria.
Topps appears not to have had some of those measures in place, analysts and industry officials say. So it was faced with an even more expensive proposition: fixing its safety problems and dealing with the expense of a recall.