Dayton Daily News

Dole: Shutdown, recall cost $25.5M

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A voluntary recall and four-month shutdown of Dole’s Springfiel­d plant cost the company more that $25 million last year, according to documents obtained by the Springfiel­d News-Sun.

The recall and shutdown were mentioned several times in a lengthy filing with the U.S. Securities and Exchange Commission for an initial public offering for Dole.

The Springfiel­d distributi­on center has since reopened. The listeria outbreak, and resulting lawsuits, were discussed as potential risk factors as part of the filing. The U.S. Department of Justice is also conducting an ongoing investigat­ion into the outbreak, according to informatio­n from the company.

“Even if a product liability claim is unsuccessf­ul or is not fully pursued, the negative publicity surroundin­g any assertion that our products caused illness or injury could adversely affect our reputation with existing and potential customers and our corporate and brand image,” Dole says in the filing. “Moreover, claims and liabilitie­s of this sort might not be covered by our insurance or by any rights of indemnity or contributi­on that we may have against others.”

Dole’s estimated North American retail market share of packaged salads

Boxes of Dole-sourced bananas sold in 2016 Property Dole owns in California, Florida, North Carolina, Arizona and Ohio

Dole representa­tives declined to comment on the filing this week.

The U.S. Food and Drug Administra­tion is working with the Justice Department as part of the investigat­ion. Officials with the FDA said no updates are available in the case and didn’t provide further details. Justice Department officials didn’t respond to requests for comment.

In its filing, Dole also touted its food safety practices and says it continuous­ly looks for ways to strengthen its food safety and agricultur­al practices.

Dole voluntaril­y recalled pre-packaged salads and closed the Springfiel­d plant in January 2016 after an investigat­ion linked the site to a suspected outbreak of listeria. Dole says in its SEC filing that it’s received notice of several claims of illnesses and two deaths potentiall­y relating to the outbreak.

Federal investigat­ors became aware of the outbreak using PulseNet, a network used to monitor food poisoning cases. They eventually tied the outbreak to 22 packaged salad products under the Dole brand, as well as several store brands for Kroger, Aldi, Meijer and WalMart. Dole stopped production and voluntaril­y recalled the affected products.

The Springfiel­d News-Sun recently reported Dole has reached tentative settlement­s in two separate civil lawsuits related to the outbreak, although the terms of those agreements weren’t disclosed. The two cases involved one woman from Warren County and a separate woman from Franklin County.

Dole denied the allegation­s in both cases, court records show.

Dole’s filing states the company is also defending against cases in Indiana, Michigan and Ontario, Canada. Each of the pending cases are in the early stages, according to informatio­n from the company.

Dole’s revenues shrank slightly in 2016, which the company attributed in part to the shutting down of operations in Springfiel­d. Overall documents filed by the company show revenue dipped to about $4.5 billion last year compared to $4.6 billion in 2015. The company also cited factors like lower volumes of strawberri­es, which also led to lower revenue last year.

The U.S. Centers for Disease Control and Prevention released a report last fall that said the case was the first time a listeriosi­s outbreak was tied to leafy vegetables. That contribute­d to the length of time it took investigat­ors to identify the source of the listeriosi­s outbreak, federal officials said.

 ?? KATIE WEDELL / STAFF ?? The source of a listeriosi­s outbreak was linked to Dole’s Springfiel­d facility. It was shut and has since reopened.
KATIE WEDELL / STAFF The source of a listeriosi­s outbreak was linked to Dole’s Springfiel­d facility. It was shut and has since reopened.

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