Filed under: Bad news, Consumer experience, Wal-Mart (WMT), Mattel, Inc (MAT), Agriculture
At least this recall was not for something made in China. The Sam’s Club unit of Wal-Mart Stores Inc. (NYSE: WMT) said that beef from agribusiness giant Cargill might contain E. coli that cause intestinal illness.
According to the Associated Press, “Cargill learned of the issue Friday, when a compliance officer from the federal Agriculture Department visited the company’s ground beef facility in Butler, Wis., Klein said. Officials had traced the patties back to that plant.”
Of course, the fact that the meat came from Cargill does not do Sam’s Club much good. Few consumers look beyond the brand of the retail outlet when a generic product like beef is recalled.
The news showed that no matter how vigilant U.S. companies are, they remain dependent on their suppliers both for goods and services, and, ultimately, their reputations. Mattel Inc. (NYSE: MAT) has learned that the hard way as it struggles to get out from the damage done to its reputation by the sale of lead-painted toys built in China.
No big retail company has enough inspectors, or can afford enough, to make certain that each item it sells is OK. The Chinese may make bad toys, but it appears that the U.S. has made some bad meat.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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