991016 Sara Lee Says Meat Unit Recovering From RecallOctober 9, 1999Chicago - Consumer products maker Sara Lee Corp. said its meat division was recovering from last year's massive recall of hot dogs and deli meat linked to a deadly outbreak of a food-borne illness. “The recall stymied the growth of Sara Lee premium meats, but since we have been back in the marketplace, our velocity and distribution are back to pre- recall levels,” George Chivari, chief executive officer of Sara Lee's branded foods division, said in a telephone interview. In December 1998, Sara Lee recalled at least 15 million pounds of hot dogs and other meat products after an outbreak of listeria, a food-borne illness that can be deadly for the elderly and people with weakened immune systems and can cause miscarriages. The U.S. Centers for Disease Control and Prevention linked the outbreak to 21 deaths and more than 100 illnesses in 22 states. Sara Lee's earnings and share price have suffered since the recall. For the fourth quarter ended July 3, sales in Sara Lee's food division fell 2.5% to $1.33 billion, while net income dropped 28.5% to 52 million, largely because of costs related to the meat recall. For the full year, sales were off 3.5% at $5.25 billion, while net income was up 5.2% at $266 million. Sara Lee shares closed at 27-11/16 on Dec. 21, the day before the meat recall was announced. On Tuesday, the stock was up 7/16 at 24-5/16. Chivari said customer confidence was returning. “I think when you take a look at how the consumer continues to perceive the Sara Lee brand, they constantly come back to trusting us,” he said.
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