"Chocolate coins sold in Costco, dollar stores contain melamine: CFIA", Vancouver Sun, October 08, 2008
This article talks about how a type of chocolate coins by the name Sherwood Brands Pirate's Gold Milk Chocolate Coins, sold at Costco and dollar stores, are recalled because it was found to contain melamine, a type of toxic chemical compound. This toxin killed four babies and sickened thousands in China. Garfield Balsom, CFIA spokesman, states that the levels of melamine in the chocolates are actually very low, and no illnesses have been reported, but because the chocolates were widely distributed, they decided to send out an advisory. Also, because Halloween is approaching, everyone should be aware of it so children do not eat it.
In chapter eleven, we learned about the accounting procedures of a merchandising business. We also learned about merchandise returns and allowances. Costco is a wholesaler, which is a merchandising business that buys goods from manufacturers and sells to retailers. Costco also sells to the general public. This article relates to chapter eleven by showing that when products are recalled, the company will have to give out cash refunds. Because the company will have to have many refunds for the toxic chocolate, it will affect the company’s revenue. If the company has sales returns and allowances accounts, the amount would appear on the income statement.
In my opinion, I think big companies like Costco should pay attention to what they are importing and selling. They should have been sure that all the products they sell are safe. This incident will more or less affect the company name as consumers will become cautious to what they buy in the store. Also, the company’s revenue will be affected as the chocolates are returned to the company. Moreover, I think that although the risk of the chocolates of being very toxic are low, I think it is right for the business to recall the products back before something does happen. With Halloween just around the corner, it is very important to make sure children do not become ill because of eating the chocolates.
Wednesday, October 8, 2008
Chapter Eleven Media Article
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5 comments:
I know exactly what you mean Jenny, not only should wholesalers and retailers be careful, the children that eat the candy should not over eat candy as well. Even if there is a problem with the candy that one has eaten, a small amount won't harm one that much. Reading your blog, my brain relates this incident to China's incident of milk powder. Not only am I afraid of eating/drinking dairy products form China now, I'm not going to eat chocolate anymore also.
Not to be against China of the sort, but I did notice that quite a few products produced in China are dangerous. For example milk formula produced in China also contained a toxin which was causing many cases of infant illnesses, and now chocolate. I don't believe it is Costco's fault for importing the chocolate, since they are just a wholesaler, they aren't scientist that can tell if something contains toxin or not. I believe the ones at fault at the manufacturers at China. They should have done all the appropriate testings to make sure the products are safe before selling them. If the manufacturers knew it contained toxins and still insisted on selling them out without letting us know, I find it really irresponsible of them.
In my opinion, I think after this incident, many parents may not allow their children to consume chocolate. Thus, I do agree with you with regards to the fact that there will be a significant decline in profit for chocolate businesses. Moreover, I do think that China should always tests their foods out before putting it in the market. Because of this, they have harmed many companies around the world just for not testing out their safety of their products. Last but not least, I do agree with the previous comments that Costco should not be taking the blame for selling these kinds of Chocolate, it is China's responsibility. One of the solutions I thought of is to make sure they do a regular check on their products so that it can prevent harming other people's health.
Invu = Betty Sung
Wow, and I used to think only dairy products from China contains that toxin...It is just terrible to hear that we are also finding them here in Canada (and in Costco, a store I used to trust!~).Anyways, I think that Costco and the other stores had no idea about the contents of the products. Although it is said that the chocolates only contain very small amounts of the chemical, but if one eats too much, I guess that there is still a possbility that he/she may get sick. Therefore, I really think that getting rid of those products is neccessary. My...it seems impossible to find products containing milk to be safe these day...
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