Maple leaf foods

Topics: Meat packing industry, Food, Maple Leaf Foods Pages: 6 (1915 words) Published: December 3, 2013

Table of Contents

Company Background
Maple leaf foods is one of the leaders in the consumer packaged food industry. Their operations span across Canada, the United States, United Kingdom, Asia, and Mexico. A few brands they produce are Schneider’s™, and Dempster’s™ which are known worldwide. The company was created in 1961 and the origins can be traced back to Grantham Mills in 1863. There are three groups Maple leaf operates in, Meat Products Group, Bakery Products Group, and Agribusiness Products Group. The first two groups are self-explanatory but the Agribusiness Products Group deals with recycling animal by-products into animal feed, amino acids, supplements, and biofuel . Introduction

We are going to look at how Maple leaf dealt with the Listeria outbreak in the package meat products group, how they dealt with the legal issues and how they interacted with the public perception of their company. The focus will be mainly on the nonmarket environment but we will briefly dive into Maple leaf’s market environments as well. Fours I’s

The summer of 2008, reports that Listeria was found in numerous products and Maple Leaf’s products are being recalled. Not only have the products tested positive for Listeria but multiple deaths have been directly linked to Maple leafs products . This brings about two issues we need to address. The first issue is a public perception of Maple leaf and how this Listeria outbreak changed public opinion on the company. The second issue will be in the legal sector, from patrons that purchased Maple leaf meat products and became ill or passed on. Consumers are becoming hyper aware about the safety of their food and any time a company has a misstep like Maple leaf they are going to be negative consequences. Intuition

To see how far spread the issue has gone we will look at the institutions that are involved from Maple leafs Listeria outbreak. The media covered the issue with their own viewpoint and brought the issue to the public. The Canadian Food Inspection Agency and the Public Health Agency of Canada were directly involved in confirming the presence of the listerosis bacteria . Any wholesaler or grocery store will have to track down Maple leaf products and send them back. The suppliers to the Maple leaf plants would have to wait until the meat packing plants were up and running again. Direct buyers of Maple leaf products such as hospitals and nursing homes have a tough time dealing with the issue. The public's sentiment of Maple leaf and how to handle this issue also can be considered an institution. Canada's federal government was also affected with the idea of amending the food and drugs act. Interest Groups

The interest groups that were involved were as follows; trial lawyers, taxpayers, citizens that were directly affected by the Listeria outbreak, consumers of Maple leaf products and other producers in Maple leafs industry. The trial, lawyers, taxpayers, citizens and consumers were directly affected by the Listeria outbreak. The other producers in Maple leaf’s industry were indirectly affected because stigma brought in by this issue. Information

Over 220 products were recalled by Maple leaf and it is estimated that the recall will cost Maple leaf $20 million Hundreds of people had fallen ill from the contaminated products and 23 people had died from Listeria related illness. In January 2009 a $27 million settlement was negotiated to pay to the victims and families of those affected by the Listeria outbreak. After heavy testing of Maple leaf’s products 30, out of a possible 841 product samples tested positive for Listeria. The food and drugs act was looked considered to be amended so that sodium acetate could be added as a preservative in the production of these foods . Sodium acetate would greatly decrease the chance of Listeria from being present in ready-to-eat meats. We define this issue as a moral hazard which creates almost 100% liability by Maple leaf to rectify...

References: Oscar Rojo, T. S. (1992, Jul 14). Maple leaf foods buys labatt stake in bakery. Toronto Star. Retrieved on 04/01/13. Retrieved from ://se arch.p m/docview/436657341?accounti d=12654
Nagel, J
Schmidt, S. (2008, Oct 09). Listeria found at maple leaf plant within standard: Company. CanWest News. Retrieved on 04/01/13. Retrieved from http://libezpr /460077023?accountid=12654
Baron, D
David, M. (2011). Listeriosis victims, families still waiting for compensation. CBC News Politics, Retrieved on 04/01/13 Retrieved from 011/10/08/pol-listeriosis-claim-payments.html
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