Once Upon a Farm said Monday, November 2, that its recalled Tractor Wheels toddler snack bars accounted for approximately 18% of year-to-date net sales, but it is too early to estimate the recall’s total cost or any insurance recovery. Chief Executive John Foraker gave the update on a business-update conference call following the company’s Friday, October 30, recall.
The company has not identified a root cause directly linked to the reported choking incidents, Foraker said in the call transcript furnished with its Form 8-K. Tractor Wheels will return to shelves only after a third-party assessment is complete and any necessary changes to meet safety standards have been implemented and validated. He gave no timetable.
Foraker said the company was not aware of any reported injuries. Separately, the U.S. Food and Drug Administration’s October 30 advisory describes reports of toddlers suffering complete airway obstruction and an inability to breathe after eating the bars. Some reported incidents required emergency response and hospital observation, the agency said.
The FDA advises consumers not to buy or serve Tractor Wheels Organic Toddler Soft-Baked Bars and to immediately throw them away. The warning covers all flavors, quantities and varieties, including every lot code and expiration date. Retailers should not sell the products.
According to Foraker, the company initially received one parent’s complaint. The FDA subsequently told it about three choking reports, including that complaint and two submitted directly to the agency. With uncertainty about which flavors and lots were involved, Once Upon a Farm recalled the entire Tractor Wheels line. The company’s Friday announcement said no other Once Upon a Farm products were affected.
The company is assessing product, retailer and other recall-related costs. It is also evaluating potential recoveries under its recall insurance and any applicable coverage involving its manufacturing partner. Foraker said it could not yet predict whether or when insurance recovery would be obtained.
Once Upon a Farm ended the third quarter with $106.4 million in cash and no debt, Foraker said. Its 8-K also disclosed up to $95 million of borrowing capacity under existing credit facilities, subject to borrowing-base limits, covenant compliance and other terms. That capacity is conditional borrowing availability, not additional cash already on hand.
The financial figures are preliminary and unaudited. Monday’s call was a recall-related business update, not the company’s scheduled third-quarter earnings release. Complete results are expected November 12. The latest disclosure adds financial exposure and investigation details to the previously announced recall; it does not provide a confirmed cost, a safety clearance or a date for resumed sales.
JBizNews Desk | New York
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