Are you a fan of Ritz Cracker sandwiches and Ritz Bits? Both items are being recalled by maker Mondelez after concern that they may be contaminated with salmonella. No cases have been confirmed, but Mondelez appears to be trying to pre-empt any PR disaster by getting in front of any potential problems. They believe that some Ritz cracker items may contain whey powder tainted with salmonella.
There's a benefit to nipping any health issue in the bud before it makes its way to the public eye. Last month, Kellogg recalled 11 million boxes of Honey Smacks cereal due to salmonella concerns, but not after over 100 people were affected with illness. Many investors also remember Chipotle's long struggle to re-establish its brand after its E.coli outbreak, not to mention the stock's plummet that followed.