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Tuesday, April 10, 2007

Menu Foods Dropped Chinese Supplier; CFO sold off stock prior to recall

Menu Foods dropped its Chinese supplier after receiving products with Melamine in the Wheat Gluten.  Scientists do not know how Melamine causes health problems in cats and dogs, but they suspect that Melamine was used to boost the appearance of protein levels so that the food could be used in premium foods charging premium prices. 

Paul Henderson, the president and chief executive of Menu Foods, said his company severed its relationship with its Chinese supplier of wheat gluten on March 6. Melamine in the supplied wheat gluten has been identified as the root of the problem.

In addition, it was also revealed that the CFO of Menu Foods Income Fund sold 45% of his units in February approximately 2-3 weeks prior to the recall on March 6.  Regulators have not yet indicated whether they will investigate the timing of this substantial sale.

Source: | Menu Foods CFO sold stock before pet food recall