Why did Menu Foods wait so long to recall the tainted foods?
Today we learned from an article in the Globe and Mail that Menu Foods first started getting complaints on their toll-free line regarding illness and deaths in relation to their products in late February. We also learned that Mr. Wein, the chief financial officer of Menu Foods Income Fund sold almost half his shares in the company on February 26th and 27th. Then on March 16th, the company issued its recall. Coincidence? Mr. Wein says it is. In explanation as to why they waited so long to recall the foods he said that the pet food maker routinely gets complaints and that "it's not something that necessarily gets flagged right to the top on an ongoing basis." However, the article says that Menu's test animals began showing signs of kidney failure in the first week of March and that the company ended its relationship with their supplier of wheat gluten on March 6th. The wheat gluten was suspected of being contaminated with melamine. The value of those shares are definitely down as of yesterday's closing and, with more and more pet owners making their own pet food, the industry must be taking a huge blow. With all this new information, you just can't help but wonder about the timing.
