“Kellogg’s recent recall of two cereal products following a metal mesh contamination scare will cost the firm between $20-30m and will hit consumer trust in the short-term, an analyst says.”
By Kacey Culliney
The cereal giant issued a voluntary recall of its Frosted Mini-Wheats Bite Size Original and Mini-Wheats Unfrosted Bite Size and was prompted by “the possible presence of fragments of flexible metal mesh from a faulty manufacturing part”.
It pulled an estimated 282,000 packages off the shelves.
“This recall will obviously hurt consumer trust in the short-term. Since the two recalled cereals are aimed at kids, it will largely affect mothers’ purchasing behavior, some of whom may stop buying the product for a couple of months or longer,” said Matthew Hudak, research analyst at Euromonitor International, told BakeryandSnacks.com.
“Some of those consumers may switch to cereal brands from rival General Mills or to private label alternatives to save money.” Hudak said.
However, this recall only affects a single brand and compared to its 2010 recall of 28 million boxes across various brands, it is “somewhat less substantial”, he added
“Additionally, since no injuries or deaths resulted from the metal fragments in the cereals, consumers are likely to forgive Kellogg Company sooner than later and return to purchasing Kellogg cereals after a few months have passed,” he said.