Associated Press
P&G Warns Retailers of Coffee Shortage
09.14.2005, 11:05 AM
Procter & Gamble Co. said Wednesday that its Folgers and Millstone coffee brands may temporarily disappear from store shelves because of a halt in production caused by Hurricane Katrina, but added that it hopes to have some coffee-making operations running soon.
About half of P&G's Folger's and Millstone brand coffees are produced at two factories in New Orleans. The company suspended production at the facilities ahead of the storm.
"Folgers and Millstone coffee may be temporarily unavailable or may appear on-shelf in different packaging until operations resume," P&G said in a statement, adding that it notified retailers of the possible shortages on Monday.
P&G said it is in the process of restoring production at the Folgers plant. The company has more than 50 employees and 50 contractors working to repair equipment, restore phone lines and make the facility water-tight.
The consumer products company said it first accessed its four facilities in the New Orleans area late last week for a damage assessment, but did not provide updates on the other operations.
P&G is continuing to pay all of its employees in the affected region and provide health benefits. At the Folgers plant, the company has 150 trailers to use as temporary housing for the workers and plans to provide free meals to employees.
P&G said it is still assessing the financial impact of the storm and plans to provide more information by Sept. 20.
P&G shares fell 33 cents to $55.21 in morning trading on the New York Stock Exchange.