Dive Brief:
- Inspectors in China’s Zhejiang Province detected dangerous levels of lead in boxes of baby cereal made by H.J. Heinz Co.
- The American company issued a recall, conducted its own tests, and confirmed the presence of lead in samples of its "AD Calcium Hi-Protein Cereal," which is marketed for infants.
- The crisis is reminiscent of the 2013 incident when Danone and others recalled baby food in nine Asian countries following what turned out to be a "false alarm" regarding contaminated dairy ingredients from Fonterra.
Dive Insight:
If the folks from Heinz are wondering just how bad this incident can turn out to be for them, they need look no further than statements from France's Danone.
Danone has estimated that recall cost roughly $476 million in lost sales and an untold amount in damage to its brand reputation.
The recall is also proving harmful to Heinz' reputation in China, and by extension, to the reputation of all Western companies. China's parents -- who have long suffered with fears over their children's exposure to toxins in food and the environment -- took to social media in droves to voice anger and worry following the recall.