On February 16, 2018, the FDA announced that low levels of an animal euthanasia drug were detected in canned dog food produced by the J.M. Smucker Company. Smucker stock dropped by 3% resulting in a loss of more than US$ 400 million in market value.
In a statement, the company said that it had “identified the root cause to be a single supplier and a single, minor ingredient, used at one manufacturing facility,” adding that it was “extremely disappointed” by the contamination.
With a mature and effective enterprise risk management (ERM) program, J.M. Smucker’s would have administered risk assessments to key vendors, completed proper vendor due diligence and risks at their facilities would be uncovered and prioritized, and risk mitigations would have been put into place.