Produce Investments shares mashed by potato salad contamination drama

13th May 2015 15:09

Shares in potato and daffodil grower Produce Investments (PIL) were hit after traces of metal were found in a potato salad made by one of its subsidiaries.The AIM-listed company said it was "too early to quantify" the potential financial impact of the recall for the year ending 27 June, but that this was being analysed.Shropshire-based cooked potato arm Swancote Foods suffered a "potential contamination issue" relating to the possible traces of metal being found in one of its products.Customers have been informed and a number of potato salad and ready meal products have been recalled."The company is working closely with its customers to determine the full facts behind this incident and to resolve the issue as soon as possible. Produce Investments is committed to maintaining the highest standards of food safety and food traceability, and is therefore extremely concerned that the quality of one of its products may have been compromised," PIL said in a statement.The company, which owns UK potato growing colossus Greenvale and floated on AIM in 2010, said it expected to resume supply shortly and will provide a further update when appropriate.Greenvale last gained controversial headlines in 2011 when two former directors were jailed for their part in the 'Sainsbury's potato scandal', having showered the grocer's head buyer John Maylam with gifts and hospitality in return for lucrative contracts.Back to the present and shares in PIL tumbled an initial 22% when the product recall was announced on Wednesday afternoon, but by 15:30 had recovered slightly to be down 13.3% to 130p.