ConAgra Resumes Pot Pie Production

OMAHA, Neb. — ConAgra Foods, Inc. has resumed production of Banquet and private label pot pies after a recall due to Salmonella concerns. The company is set to begin shipments to retail customers in December, and products should be in stock at retail stores as soon as January.

Amanda Eamich, a spokeswoman for the U.S. Department of Agriculture’s Food Safety and Inspection Service said the company took action to correct the problems inspectors identified, which satisfied requirements for resuming production. Eamich said there were problems relating to the facility’s Hazard Analysis Critical Control Point program.

As a result of the recall, ConAgra expects to record a charge of $30 million, or 4 cents per share, with most of this amount to be posted in the second quarter. The company said strong earnings from the Trading and Merchandising group should help offset the direct recall costs when considering earnings per share outlook for fiscal 2008.

"We’ve strengthened processes and testing within our plants and for our suppliers, and we have revised the product cooking instructions to make certain we minimize any potential for future issue," said Gary Rodkin, chief executive officer. "Any lapse in the safety of our food is unacceptable, and I know the steps we’ve taken will make a positive difference and help us provide consumers and customers with safe, wholesome products."

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