Menu Foods Income Fund (TSX: MEW.UN) took a steep plunge today after they announced that they are recalling about 60 million cans of wet dog and cat food.  The recalled food has been linked to numerous deaths in pets, affecting their kidneys.  This is turning into a very big issue since this company makes pet food for 88 different brands.  For a complete list of recalled food you can check out Menu Food’s site for dogs and for cats.   I wonder how long before there is a class-action lawsuit filed against Menu Foods and these pet owners sue for emotional damages of a lost pet.
So today after the news has become widespread, Menu Foods faced the music, it fell $1.35 (24.55%) to $4.15, although my feeling is that it will continue to slide.  Many of the customer who had previously bought dog food from these brands will no longer feel they can trust this company, thus many people will switch.  This should increase the demand for the competitors products, such as the Purina brand which is owned by Nestle, and Meow Mix which is owned by Del Monte Food Company (NYSE: DLM).