A supermarket cake supplier involved in this month’s contaminated egg scare has said its insurer is disputing a claim over product withdrawal costs.
Finsbury Food, whose Cardiff-based Memory Lane cake business was caught up in the toxic egg fears, saw retailers pull some of its products from shelves amid concerns they contained liquid egg imported from Germany and were potentially contaminated with poisonous dioxin chemicals.
But there was since found not to have been any public health risk and Finsbury said its insurer is now therefore challenging its claim for costs.
Finsbury is now in talks with the insurance provider, egg supplier and retailers to resolve the issue.
Memory Lane Cakes was one of two retail suppliers that were thought to have had products potentially contaminated earlier this month.
The alert came after it was discovered that poultry feed contaminated by toxic dioxins was sent to more than 1,000 poultry and pig farms in Germany.
The Food Standards Agency said at the time there was no safety risk from eating the products and that the majority would already have been sold or passed their ‘best before’ dates by the time of the news.
Finsbury said the scare led to a “challenging” start to its second half, while it also battles against rising input costs and cautious consumer spending.
However, it said revenues in the first six months rose 6% thanks to a 14.5% surge in sales across its bread and ‘free from’ division.
Sales in the larger cake division lifted 3.2% in the half-year, albeit supported by heavy promotions to remain competitive.