The Procter & Gamble Company (PG) recently recalled dry pet food manufactured by its subsidiary, Natura Pet Products Inc., due to possible contamination with Salmonella. All products with expiration dates prior to Jun 10, 2014 are being recalled. It has been confirmed that Salmonella was found in products manufactured in a single production facility. However, no Salmonella related infection has been reported to date.
These recalled products come under 6 well-known brands, Innova, Evo, California Natural, Karma, Healthwise and Mother Nature. The products range from dry dog and cat food, biscuits, bars and treats.
On Mar 18, the company initiated the recall of specific lots of dry pet food. In order to mitigate risks, Natura expanded the recall of products made in the same time frame on Mar 29.
The Natura Pet product line is a well-known name for premium pet food and treats. The products are made in accordance with nutritional science and include high quality ingredients.
Overall, we are encouraged by P&G’s strong brand recognition, diversified portfolio, rapid growth in developing nations, impressive product development capabilities and marketing prowess. Though fiscal 2012 turned out to be a tough year for P&G, the company plans to implement some meaningful changes to re-accelerate its top and bottom line. However, we would remain on the sidelines until we witness further progress from the turnaround efforts.
Procter & Gamble currently carries a Zacks Rank #3 (Hold).
Other companies in the consumer staples sector that warrant investor attention include Zep, Inc. (ZEP), Flower Foods Inc. (FLO), and B&G Foods Inc. (BGS). Flower Foods and B&G Foods both carry a Zacks Rank #1 (Strong Buy), whereas Zep carries a Zacks Rank #2 (Buy).
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