Fact is, removing Menu Foods doesn’t remove the demand for wet pet foods. This demand, combined with the fact that no other company has capacity to fill the void, means Menu Foods’ services are still required by some companies. The recall will hurt Menu Foods, but at this point, it looks as if they will weather the storm.
If you think that lawsuits could put away a corporation, just look at the cigarette industry. In our opinion, lawsuits will take several years to hit Menu Food’s bottom line, when the recall is just a faded memory in the minds of most consumers. Coupled with the fact that many deaths will go unreported and unverifiable, and “replacement value” laws restricting awards in most states, it’s unlikely to be a death-knell. Even the FDA chimed in on Menu Food’s financial liability:
â€œâ€¦litigation will likely be limited given word from the U.S. Food and Drug Administration that â€œrisk is limited to reimbursing the impacted pet owners for the cost of replacementâ€ and Menu Foodâ€™s offer to cover related veterinary costs.â€
What does it take to bring down a “market leader” like Menu Foods?
(Menu Foods CEO, Paul Henderson pictured)
P.S.: This is beginning to look like the the pet world equivalent of the Union Carbide Bhopal Disaster.