For food and drink companies a health scare can be extremely damaging, as Cadbury Schweppes has found out to its cost over the past month following the recall of a million chocolate bars due to salmonella concerns.
The estimated cost of the recall was 5 million pounds, although the longer-term damage to its brand could end up costing significantly more. The polling company YouGov recently revealed its BrandIndex product, which tracks consumer perception of various top brands, had detected a swift reversal in perception towards Cadbury.
Investors who have, by and large, stuck by the company will be looking for reassurance from its management at its interim results on Wednesday and for an update on sales in the five weeks since the scare emerged. Cadbury shares, which hit a five-year high of 591p earlier this year, briefly dipped below the 500p level but have since consolidated around the 510p level.