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Entries in Kellogg's (2)

Monday
Apr232012

European Markets Sharply Decline, Possibly More Bad News for US Economy

iStockphoto/Thinkstock(NEW YORK) -- Austerity measures in European countries are under fire, but there are no easy choices for the debt crisis many large European economies are embroiled in. As a result, markets in Frankfurt and Paris closed down about 3 percent Monday.  London’s FTSE was down nearly 2 percent.

The fortunes of the cereal company Kellogg give us a sense of the impact Europe can have.  The company cut its earnings outlook Monday. The CEO said in a statement, “we faced more significant challenges in both Europe and in some categories in the U.S. than we expected.”  Fewer Frosted Flakes and Pop Tarts sold in Europe means the company stock is being hammered, down more than 5 percent.

U.S. markets are also lower, though the Dow is off the worst of its lows so far Monday.

About this time last year the U.S. economic recovery began weakening and the European crisis began to negatively impact global markets. Europe’s crisis can affect the U.S. because:

  • Europe is a major export market for U.S. goods.  A weak Europe means a diminishing market for U.S. goods.
  • A drop in the value of the Euro will cause the value of the U.S. dollar to rise, making it harder for the U.S. to export goods.
  • U.S. banks are exposed to European banks.  Though U.S. banks can likely withstand potential losses there, they will still be affected by the negative financial environment, which adds to a reluctance to lend to U.S. consumers.
  • Of course 401ks and pension funds are negatively impacted when stock markets suffer.


Copyright 2012 ABC News Radio

Tuesday
Jun142011

FDA Finds Unsanitary Conditions at Kellogg's Cookie Plant

Scott Olson/Getty Images(ATLANTA) -- FDA investigators discovered unsanitary conditions, flies and dangerous bacteria earlier this year at a factory that makes Keebler and Famous Amos cookies.
 
In a June 7 letter sent to Kellogg’s, the director of the FDA’s Atlanta office warned that foods made at the company’s cookie factory in Augusta, Ga., “have been prepared, packed, or held under unsanitary conditions whereby they may have become contaminated with filth.” More troubling, agency investigators also found Listeria monocytogenes throughout the facility.
 
Harmless to most people, Listeria can be a serious health risk for children, pregnant women and the elderly.

Kellogg's Company spokesman Kris Charles told ABC News in an email that the plant “produces a variety of Keebler and Famous Amos cookies.”

“While the FDA did not identify specific concerns with the food, we take this situation very seriously,” Charles wrote. "We have undertaken a number of aggressive actions to address their concerns including comprehensive cleaning and extensive testing. We have confidence in the safety of our food.”

The FDA said baking the cookies would be likely to kill the bacteria but went on to warn Kellogg’s, “the positive environmental swabs are indicators of insanitary conditions in your facility and demonstrate a failure of cleaning and sanitation operations that may allow for contamination of foods with filth or pathogens.”
 
This is not Kellogg’s first problem with Listeria in Georgia. In 2009, as reported by ABC News and others, Kellogg’s shut down and sanitized an Eggo frozen waffle plant in Atlanta after discovering Listeria monocytegenes.

Copyright 2011 ABC News Radio







ABC News Radio