Shares of Japanese packaged food producer Warabeya Nichiyo Holdings Co. dropped as much as 8.6% on Monday, the most in ten months, after apologizing over cockroach contamination in a rice-ball product.
(Bloomberg) — Shares of Japanese packaged food producer Warabeya Nichiyo Holdings Co. dropped as much as 8.6% on Monday, the most in ten months, after apologizing over cockroach contamination in a rice-ball product.
Seven & i Holdings Co.’s Japan subsidiary also published an apology. Its shares fell as much as 1.1% at the open before recovering to trade slightly higher and in line with the broader market.
Warabeya trimmed its loss to 4.5% at 11:30 a.m. in Tokyo. The company said it is recalling all relevant goods from the factory in Omiya where the food was produced, according to a press release.
The stock market action followed a video that went viral Friday with footage of a rice ball that appeared to contain a cockroach at a Seven Eleven convenience store.
Warabeya mainly produces prepared lunch boxes, ready-to-eat flavored rice balls and snack pastries. Seven Eleven Japan contributes a majority of the companies total sales, according to company filings.
While Japan is widely known for its cleanliness, there have been high-profile cases of food contamination that have shocked the nation.
Earlier this year, its famed conveyor-belt sushi restaurants were scrambling to tackle a phenomenon dubbed “sushi terrorism” in which customers committed unhygienic acts, including licking communal items.
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