Domino’s op­er­a­tor falls 6% on re­ports of bugs in sa­chet

Financial Chronicle - - FRONT PAGE - RISHITA KABI

JU­BI­LANT Food­works, which sells Domino’s Pizza in In­dia, slipped the most in 10 months on Wed­nes­day af­ter a video of bugs in a pizza sea­son­ing sa­chet was widely cir­cu­lated and viewed by con­sumers, cast­ing doubts on the hy­giene and qual­ity of the prod­ucts sold by the com­pany. Deutsche Bank too raised con­cerns on bugs be­ing found in a Domino’s Pizza sea­son­ing sa­chet. The global fi­nan­cial re­search firm said such an in­ci­dent could po­ten­tially be se­ri­ous for Domino’s fran­chise in In­dia, a news chan­nel re­ported.

Ju­bi­lant Food­works slipped 6.09 per cent to Rs 1,338 at the close of trade on the Na­tional stock Ex­change on Wed­nes­day.

The video of live in­sects crawl­ing out of a Domino’s Pizza sea­son­ing packet was posted on Face­book by Rahul Arora, a Delhi res­i­dent, who claimed to have bought the pizza a day ear­lier. Arora filed a com­plaint with the DCA. It’s dif­fi­cult to tell with whom the buck stops, he pointed out to the lo­cal me­dia. Domino’s Pizza, op­er­ated by Ju­bi­lant Food Works, pur­chases oregano sa­chets from a com­pany named Dry Blend Foods, pre­sum­ably un­der the in­ter­na­tional qual­ity stan­dards set by the par­ent Domino’s USA, and cer­ti­fied fit for con­sump­tion by the FSSAI.

The Domino’s bugs in­ci­dent un­der­scores the un­hy­gienic food stor­ing and qual­ity is­sues be­ing faced by In­dian and multi­na­tional com­pa­nies. In 2003, Cad­bury con­sumers found worms in Dairy Milk bars in Ma­ha­rash­tra and Kerela while Nes­tle had to with­draw its pop­u­lar brand Maggi noo­dles af­ter a govern­ment lab­o­ra­tory de­tected higher amount of Monosodium glu­ta­mate. Ear­lier, Tamil Nadu dairy de­vel­op­ment min­is­ter KT Ra­jen­thra Bha­laji al­leged that the milk pow­der supplied by Nes­tle and Re­liance in the state con­tained chem­i­cals like caus­tic soda and bleach­ing pow­der.

Mean­while, Ju­bi­lant Food­works said, “We have thor­oughly checked the oregano sa­chets in our restau­rants and across our value chain. We have found them to be safe for con­sump­tion.”

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