Organic food company Annie’s Inc. (BNNY: Quote) on Tuesday announced a voluntary recall of certain frozen pizzas due to the possible presence of fragments of flexible metal mesh caused by a faulty screen at a third-party flour mill.
Following the news, the company’s shares tumbled 13 percent in after-hours trade on the New York Stock Exchange.
Annie’s, which went public last March, said all varieties of Annie’s RISING CRUST FROZEN PIZZA with a best by date including and between January 9, 2013 and September 14, 2013 are affected due to the recall. The products were distributed to grocery, mass and natural food stores throughout the U.S.
The company announced the recall after learning a fine metal mesh screen failed at a third-party flour mill and fragments of flexible metal mesh were found in the flour and pizza dough.
The company said that while it is early to estimate the final cost related to the recall, it expects an impact on its third-quarter results, as well as future quarters.
The company had expected sales in the third quarter of about $37 million, but that estimate will likely be lower and it expects pizza sales for the fourth quarter to be reduced before it begins replacing the pizzas next month.
The company, which is now sourcing flour from an alternate mill, said it is co-ordinating with the U.S. health authorities to resolve the problem.
Annie’s closed Tuesday at $38.47, up 5.72%, on the NYSE. In after hours, the stock dropped $5.27 or 13.70%.
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by RTT Staff Writer
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