General Mills slips after large Cheerios recall

In an apologetic letter to the public, General Mills senior vice president and president of the cereal division, Jim Murphy, said, “I am embarrassed and truly sorry to announce today that we are recalling boxes of Cheerios and Honey Nut Cheerios produced on several dates at our Lodi, California facility”. “We sincerely apologize to the gluten-free community and to anyone who may have been impacted”. The company is transitioning five varieties of Cheerios to gluten-free and investing significantly in promoting the new products.

The cereal being recalled comprises “Better If Used By” dates spanning from July 12, 2016 through July 25, 2016.

The recall involved wheat flour being accidentally integrated with oat flour at the Lodi facility. The company issued the recall voluntarily.

This recall includes 150,000 cases which contains 1.8 million boxes of Cheerios and Honey Nut Cheerios marked “gluten-free”. This “simple change” was implemented to ensure gluten-free consumers can “enjoy their favorite kind of Cheerios again” and also to allow General Mills to meet the FDA’s strict gluten-free guidelines. A list of the products affected is available on the Cheerios website.

General Mills said they have tested and confirmed the cereals produced before and after the affected dates are FDA compliant and gluten free. “Our biggest concern is over reputational risk, because the new gluten-free Cheerios just launched”.

General Mills Inc. said it will take the cereals out of warehouses and off store shelves, and says customers who can not eat wheat should contact the company for a replacement box or a full refund.

General Mills (NYSE:GIS) opened at 57.22 on Tuesday.