Annies (BNNY) Shares Get Hammered in Wake of Pizza Recall

January 22, 2013 5:26 PM EST
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Shares of Annie’s (NYSE: BNNY) fell late on Tuesday after the company announced a voluntary recall of 7 varieties of frozen pizza. The company worries the failure of a metal screen at a third-party mill may have contaminated dough used in production of the pizza. While no metal has been found in Annie's finished product and no consumers have complained, as a precaution, Annie’s initiated this voluntary recall. The company also admitted that its screening process failed to detect the contamination.

A spokes person for Annie’s said it was working with the FDA and USDA to reach a quick resolution, but investors fear the recall may not only affect the company’s bottom line, but might also damage Annie’s reputation, especially if consumer come forward with complaints.

Shares of Annie dropped 10 percent following the announcement.

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