Salmonella infection at chocolate factory for Unilever PLC, Modelez International, Nestle SA supplier - Proactive Investors USA

A salmonella contamination has halted production at the world's biggest chocolate factory run by the Swiss company Barry Callebaut in Belgium.

Barry supplies cocoa and chocolate products to many food companies including Hershey Co (NYSE:HSY), Mondelez (NASDAQ:MDLZ), Nestle S.A. (OTC:NSRGF, VTX:NESN) and Unilever PLC (LSE:ULVR).

With sales of 2.2mln tonnes in the 2020-21 fiscal year, Barry Callebaut is the world's number one in the sector.

Production at the factory, which makes liquid chocolate for 73 clients who make confectionery, was temporarily halted, a company spokesman told media.

So far, there have been no reports of chocolate consumers being exposed to salmonella, a bacteria that causes salmonellosis, which causes diarrhea and fever but is only dangerous in extreme cases.

The spokesman said all products manufactured since the test had been blocked, with the company contacting all its customers, and added chocolate production in Wieze has been suspended until further notice.

Belgium's food safety agency was informed, and an investigation has been opened.

"We view as positive Barry`s quality control work and that it has been open and transparent in reporting the issue immediately," said analysts at UBS.

"According to our first checks and considering supply chain times (but work in progress), it seems products that could be at risk of having salmonella content are in Barry`s or customer warehouses, hence it seems the products have not hit the retailers or consumers yet.

"This is important for the reputation of the customers. In food products, contaminations are always a risk and we are not aware of any related issue at Barry in the past."

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