By Juveria Tabassum and Angela Christy M
Aug 10 (Reuters) - Taylor Farms is recalling prepared foods containing jalapenos from retailers including Walmart, Kroger and Whole Foods in several states over potential salmonella contamination, the second major foodborne illness linked to the produce supplier in recent weeks.
The California-based supplier said on Sunday it had voluntarily recalled the products, including salsas and guacamole, after being notified that Coast Citrus Distributors was recalling
the fresh peppers due to an outbreak that has sickened more than 300 people.
The recall adds another layer of worry for consumers, who have been avoiding fresh greens at groceries and restaurants after Taylor recalled iceberg lettuce due to a cyclospora outbreak that is already among the largest foodborne illness events in recent U.S. history.
Taylor is one of North America's largest producers of salads and fresh-cut vegetables and a key supplier to major supermarket chains and restaurant operators, including McDonald's and Chipotle.
Taylor Farms said in a statement on Sunday that it had stopped sourcing from a farm in Sinaloa, Mexico, identified as the potential source of salmonella. Its products were also recalled from Target, Trader Joe's and Maine-based supermarket chain Hannaford.
The company was already facing heightened scrutiny due to the cyclosporiasis outbreak that has spread through most U.S. states. Health authorities are still investigating the source of that infection, which causes severe diarrhea and can linger for weeks.
"Consumers are likely to avoid all Taylor Farms products for a while. Taylor Farms will have to work hard to change the perception that its products can make people sick. It could take some time," said Joe Feldman, senior managing director at Telsey Advisory Group.
Industry experts say, however, that because much of Taylor Farms' produce is sold wholesale and unbranded, it will be hard for consumers to steer clear entirely of those products. As a result, overall consumer demand for fresh produce has dipped.
Taylor previously suspended iceberg lettuce sourcing and production from central Mexico after the U.S. Food and Drug Administration linked a large cyclosporiasis outbreak to shredded lettuce supplied by the company from a processing facility in the Mexican state of Guanajuato. As of August 5, the company said the regulator had not confirmed positive sample tests for cyclospora on its lettuce.
The Centers for Disease Control and Prevention (CDC) and the FDA said last week they were investigating the salmonella outbreak, which has sickened 345 people across 27 states and led to 36 hospitalizations.
The U.S. investigation into the salmonella outbreak identified restaurants including Chipotle Mexican Grill and Qdoba, a Mexican-style restaurant chain, as having received jalapenos imported by Coast Citrus Distributors. Both restaurants stopped using them, while Coast Citrus recalled the remaining product and notified customers.
Salmonella infections can cause diarrhea, fever and stomach cramps and can be particularly severe in young children, older adults and people with weakened immune systems.
Taylor Farms said it was unaware of any reported illnesses linked to the voluntarily recalled items.
Walmart said in a statement on Monday that it had removed the products from its stores and implemented a sales block at its registers as well as online.
Kroger declined to comment. Target, Whole Foods, Trader Joe's and Hannaford-parent Ahold Delhaize did not immediately respond to a Reuters request for comment.
According to NielsenIQ data, U.S. fresh iceberg lettuce unit sales in the four weeks ended July 25 fell 15.3% from a year earlier, following an 11.1% decline in the four weeks ended June 27.
"The cyclospora scare seems to be having an impact on consumer buying habits. Many consumers are avoiding lettuce of all kinds, unless they know the source, such as a local farm," Feldman added.
(Reporting by Abu Sultan, Juveria Tabassum and Angela M Christy in Bengaluru and Isla Binnie in New York; Additional reporting by Anuja Bharat Mistry; Editing by Nick Zieminski, Sergio Non, Kevin Buckland, Anil D'Silva, and David Gaffen)
