Cyclospora salad sales fall as targeted lettuce recall spooks diners
Salad-chain traffic and packaged-salad sales declined after a Cyclospora outbreak, though the FDA recall targets specific iceberg lettuce.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Cyclospora salad sales are falling as consumers pull back from greens following a multistate foodborne-illness outbreak. For investors, the immediate signal is that a recall limited to certain iceberg lettuce has created a broader demand problem for restaurant and grocery businesses that sell fresh prepared food.
NielsenIQ data cited by CNBC showed dollar sales of prepackaged salads dropped 14% from a year earlier in the four weeks ended July 25. Chopt Creative Salad Co. traffic fell 24% on July 18, according to Placer.ai data reported by CNBC.
Sweetgreen said outbreak-related consumer concern reduced its July same-store sales by roughly 6 percentage points, according to CNBC. The chain also cut its full-year outlook. Sweetgreen was not identified in the FDA outbreak advisory.
The distinction matters: public-health officials have linked the confirmed multistate outbreak to recalled iceberg lettuce from central Mexico, rather than to all salads, lettuce or fresh produce.
Which lettuce products are included in the Cyclospora recall?
The FDA said Taylor Farms de Mexico voluntarily removed iceberg lettuce sourced from central Mexico from the U.S. market and began a recall on July 17. The recalled items included specified Marketside Iceberg Salad and Shredded Lettuce products sold at select Walmart stores, along with products sent to food-service customers. The agency’s advisory lists product dates, states and distribution details.
As of the FDA’s Aug. 5 update, the investigation remained ongoing and covered 6,358 illnesses in 15 states. The agency said the higher count partly reflected additional interviews and the addition of people who reported exposure to Taco Bell or recalled Taylor Farms de Mexico iceberg lettuce. It also cautioned that counts could keep rising because linking a new illness to the outbreak can take up to six weeks.
Taco Bell locations that received recalled lettuce were included in the advisory. The FDA said Taco Bell indicated it stopped using lettuce from Taylor Farms de Mexico on July 17. An earlier CDC alert linked illnesses in five states to shredded iceberg lettuce served at certain Taco Bell locations.
Why are businesses beyond the recall seeing weaker demand?
The restaurant and retail figures show a consumer response wider than the product-specific recall. CNBC also reported that Chipotle saw about 200 basis points, or 2 percentage points, of sales softening in the second half of July around the Cyclospora issue, citing Chief Financial Officer Adam Rymer. Chipotle uses romaine lettuce and cilantro in menu items.
Cyclospora is a microscopic parasite that can cause the intestinal illness cyclosporiasis after contaminated food or water is consumed, the FDA says. Symptoms often include watery diarrhea and can begin about a week after infection, although the range is two to 14 days or more.
The FDA advises consumers, restaurants and retailers to discard recalled lettuce, then clean and sanitize surfaces or containers it touched. Rinsing produce may not reliably remove the parasite, and the agency says consumers should not use soap or bleach on produce. People who develop symptoms, particularly after eating recalled shredded iceberg lettuce, should contact a health care provider.
This story draws on original reporting from CNBC.
