Kellogg's Mini-Wheat recall comes after cutbacks, company reinvesting in supply chain
Three days ago, Battle Creek cereal maker Kellogg's announced a voluntary recall of Frosted and Unfrosted Mini-Wheats.
We have initiated a voluntary recall due to the possible presence of fragments of flexible metal mesh from a faulty manufacturing part. Recalled products include only Frosted Mini-Wheats Bite Size Original and Mini-Wheats Unfrosted Bite Size with the letters KB, AP or FK before or after the Best If Used Before date.
You can see a list of UPC codes on the Kellogg's website.
The Wall Street Journal reports on how much the recall will cost the company:
Kellogg Co. K +0.54% said Wednesday it would take a charge of up to $30 million to cover the recall of Mini-Wheats cereal in the U.S. due to possible contamination by pieces of metal mesh. Retailers have been contacted about the recall of 2.8 million packages of Frosted Mini-Wheats Bite-Size Original and Mini-Wheats Unfrosted Bite Size, which are being pulled from store shelves. Kellogg blamed the contamination on "a faulty manufacturing part," and said no injuries had been reported.
The WSJ reports the metal mesh problem comes after the company went through another recall in 2010 for a variety of cereals.
The paper reports the company is spending hundreds of millions of dollars to fix its supply chain, "which suffered deep cost cuts, leaving several manufacturing facilities overworked and too few people overseeing operations."