Quaker Oats, a unit of beverage company Pepsico Inc. (PEP) has voluntarily recalled its 8-count Quaker Chewy Smashbar Graham Pretzel snack bars due to an undeclared milk allergen that was not been mentioned on the label.
The company fears that people allergic to milk will run a serious risk of life-threatening allergic reaction on consumption of the product.
Management has also revealed that the Quaker Chewy Smashbar Graham Pretzel snack bars carrying the Universal Product Code (‘UPC’) ending with 31108 are the only affected products. It has also confirmed that no other Quaker Chewy Smashbars, Quaker Chewy granola bars or Quaker products including the 40-count Quaker Chewy Smashbar variety pack sold at club stores run the risk of this allergy.
Reportedly one allergic reaction had already been reported by a consumer. The company has kept the Food and Drug Administration (‘FDA’) in confidence and sought its help for the safety of consumers.
Quaker has also declared that customers who have purchased the product can still return it to the retailers from whom it was purchased and ask for a refund.
Headquartered in Chicago, Quaker Oats Company is an American food conglomerate, which was acquired in August, 2001 by Pepsi.
Core earnings for PepsiCo Inc. climbed 10% in the second quarter to $1.21, compared to last year's $1.10. The higher earnings were driven by operating profit growth and a lower core income tax rate year over year.
Based on second-quarter 2011 results, PepsiCo expects earnings per share growth in the high-single-digits for fiscal 2011. This fiscal estimate also considers the estimated foreign exchange translation benefit of approximately two percentage points, from its fiscal 2010 core EPS of $4.13.
A strong new product pipeline, robust international sales and on-going productivity enhancement initiatives are all positives for PepsiCo. However, we are concerned about Pepsico’s vulnerability to currency translations, and the possibility of the company facing an inflationary impact of approximately $1.4 billion to $1.8 billion.
Currently, we prefer to be ‘Neutral’ on the stock. Furthermore, Pepsi holds the Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
PEPSICO INC (PEP): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment