Kellogg Recalls 28 Million Boxes of Breakfast Cereals

Kellogg Co., the largest U.S. breakfast cereal maker, voluntarily recalled about 28 million boxes of cereal including Froot Loops and Honey Smacks, citing unusual taste and odor coming from the liner of packages.

The recall also involves batches of Apple Jacks and Corn Pops, Kellogg said today in a statement. While the potential for serious health problems is low, a few customers have experienced temporary symptoms including nausea and diarrhea, Kellogg said.

“We have identified a substance in the package liner that can produce an uncharacteristic wax-like off taste and smell,” J. Adaire Putnam, a company spokeswoman, said in an e-mail. “Our chemistry team is working to isolate the exact substance.”

The Battle Creek, Michigan-based company relied on cereal for 51 percent of total sales in 2009, according to Bloomberg data. Putnam said it is premature to comment on whether earnings may be affected as Kellogg is assessing the situation.

Kellogg fell 44 cents to $52.42 at 4:20 p.m. in New York Stock Exchange composite trading. The shares have dropped 1.5 percent this year.

The recalled boxes were made at an Omaha, Nebraska, facility, Putnam said, declining to provide its production capacity. She also declined to disclose how many packages of cereal the company produces every year.

The company said it is working on the recall in consultation with the U.S. Food and Drug Administration.

In January, Kellogg was ordered by the FDA to improve sanitation controls at an Atlanta plant. The FDA letter, made public on the regulator’s website the following month, came after Eggo buttermilk waffles were found to be contaminated with Listeria bacteria.

To contact the reporter on this story: Niveditha Ravi in New York at nravi1@bloomberg.net

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