Premier Foods’ insistence that it had not only received written assurances from suppliers but also conducted its own tests of the rogue chilli powder at the centre of the Sudan scare has baffled scientists.
While some tests were not sensitive enough to pick up the trace levels of Sudan 1 found in ready meals, they would definitely have picked it up in the original consignment of chilli powder, had Premier tested it, experts claimed this week.
According to the Food Standards Agency, 3mg per kg of Sudan 1 were found in the Cross & Blackwell Worcester sauce, and 80mg per kg in the seasoning mix that went into the sauce.
Campden and Chorleywood Food Research Association head of chemistry and biochemistry Brian McLean said: “I cannot comment specifically about Premier Foods, but I can say that most tests would pick up levels of 80 parts per million - no question.”
His comments came as Premier Foods chief executive Robert Schofield said he was confident the company would not be materially affected by the recall, which has spread to 474 products.
Speaking as the company unveiled a 9.1% rise in operating profit to £71.9m on sales up 8.8% to £842.2m for the year to December 31, 2004, Schofield said: “At this time, based on its assessments, its own insurance position and its potential claims against its suppliers and their own insurers, Premier does not believe it has any material financial exposure.”
While own-label products had struggled during the year, branded products were performing well, despite the setback caused by a fire at Premier’s factory in Bury St Edmunds last year, said Schofield. “We increased our marketing expenditure by 5% to £30.4m in 2004, reflecting our focus on drive brands, which showed sales of Loyd Grossman up 18%, Branston up 2% and Typhoo up 3%.”
Premier’s shares, which dropped to 263.5p during the week, were back at 272.25p as The Grocer went to press.
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