Taylor Farms recalls iceberg lettuce across 27 states

Taylor Farms is recalling iceberg lettuce in 27 states after federal investigators linked shredded lettuce to a cyclosporiasis outbreak. For retail investors, the story touches several consumer-facing businesses at once: a major produce supplier, Yum Brands’ Taco Bell and Walmart stores that may have sold related salad products.

The company said late Friday that it is voluntarily taking all iceberg lettuce sourced from central Mexico off the U.S. market. A voluntary recall means the company is removing product from sale or distribution rather than waiting for a mandatory government order.

According to Taylor Farms, the affected shredded iceberg lettuce was distributed from June 29 through July 16. The states named by the company included Alabama, Connecticut, Georgia, Massachusetts and Texas. California and New York were not listed in the recall notice.

Taylor Farms said the move followed information from the Food and Drug Administration. The company said FDA traceback work pointed to a specific independent farm as a possible source of the outbreak and said that farm represented less than 1% of the U.S. iceberg lettuce supply. Taylor Farms said it still removed all iceberg lettuce from the central Mexico region indefinitely.

What health officials have said

The Centers for Disease Control and Prevention traced the outbreak to shredded iceberg lettuce served at Taco Bell restaurants in five states, including Indiana, Kentucky and Michigan. Taco Bell, owned by Yum Brands, had already removed the potentially contaminated lettuce from its restaurants before Taylor Farms announced the broader recall.

Cyclosporiasis is an illness caused by the Cyclospora parasite. The FDA says people infected with Cyclospora may develop flu-like symptoms and “watery diarrhea, with frequent bowel movements.”

Food recalls can move quickly because restaurants and retailers often pull items before illnesses are confirmed from a specific store product. That limits exposure for customers, but it can also create short-term disruption across suppliers, store shelves and restaurant menus.

Walmart removes four salad products

Walmart posted a notice Saturday about the FDA’s latest announcement on the Taylor Farms recall. The retailer said the lettuce may have been sold at stores in states including Alabama, Indiana and West Virginia.

A Walmart spokesperson told CNBC that customer health and safety is a top priority. The spokesperson said there is no indication that products sold in Walmart stores are affected by the current Cyclospora investigations, but the company removed four bagged iceberg lettuce salad products from select locations as a precaution after receiving notice from its supplier.

The Walmart spokesperson also told CNBC that there have been no confirmed illnesses tied to those products at this time. Walmart said it is working with its supplier and moved immediately to take the products off sale.

The recall adds another reminder that food-safety events can spread beyond the company that grows or processes the product. Once an ingredient enters restaurant kitchens or packaged salads, a supplier issue can become a brand issue for chains and retailers whose customers see the product on a menu or shelf.

This story draws on original reporting from CNBC.