The Mars chocolate recall could cost tens of millions of dollars

Photo: Ian Waldie/ Getty Images.

Mars, the chocolate maker, is recalling products from 55 countries across the world after a German customer found plastic in one of the brand’s chocolate bars.

The plastic has since been traced back to a Mars factory in the southern Dutch town of Veghel, from which product is distributed internationally.

It is the first time Mars has had to recall products made at its Veghel factory, which opened in 1963.

The products affected by issue only relate to fun-size packs, including Mars bars, Milky Way, Snickers, Celebrations and Mini Mix.

While the recall is “voluntary”, it’s expected to cost the company tens of million of dollars.

One retail analyst told The Gaurdian: “While it’s a precautionary measure it will have a significant financial cost attached, certainly running into tens of millions of dollars. The cost comes directly from the recall process, the loss of writing off products, and from lost sales.”

Most of the countries undergoing recalls were European but it also extended as far as Vietnam and Sri Lanka in Asia.

It is still unknown whether Australia is involved.

In 2005 Mars was forced to make a mass recall of its Mars and Snickers bars in New South Wales after its manufacturer MasterFoods received extortion threats saying the chocolate had been contaminated.

The company recalled and destroyed more than three million bars and replenished the 40,000 stores that had products removed. That recall cost the company $10 million.

The Guardian has more.

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