Cadbury faces second salmonella prosecution

LONDON, June 15 (Reuters) Cadbury Schweppes Plc, the world's largest confectionery group, was facing a second prosecution today as it is set to appear in a UK court charged by a local council with selling unsafe chocolate.

Cadbury, which makes Dairy Milk chocolate, will appear before Birmingham Magistrates' Court sometime after 1430 hours today after Birmingham City Council decided to prosecute the London-based chocolate and sweets group.

The council is prosecuting Cadbury under the General Food Regulations and the Food Hygiene Regulations for, amongst other things, failing to immediately alert authorities it had reason to believe some of its chocolate was infected with salmonella.

In addition, Herefordshire Council announced today it is to prosecute Cadbury over the same alleged offence which occurred in 2006. Cadbury faces the possibility of unlimited fines from both court cases in Birmingham and Herefordshire.

Cadbury has its British chocolate manufacturing interests based in Birmingham in the West Midlands, hence the involvement of its city council, while the alleged offence took place at one of Cadbury's factories in Herefordshire.

Cadbury has said it detected salmonella on January 19, 2006, at its Marlbrook plant in Herefordshire, 80 km south-west of Birmingham, which produces chocolate crumb mixture. But the group said it did not report the contamination because it believed that there was no risk to human health.

Cadbury admitted the problem on June 23, which was linked to a leaking pipe, and announced it was recalling over 1 million chocolate bars in the UK and Irish markets in a precautionary move because they could contain minute traces of salmonella.

Cadbury estimated the cost of the recall at 30 million pounds.

The UK Health Protection Agency said later the most credible explanation of the outbreak of salmonella montevideo was the consumption of products made by Cadbury.

After months of investigations, Birmingham City Council decided in April 2007 to press charges against Cadbury for selling unsafe chocolate products, failing to report salmonella immediately and for failing food hygiene and hazard controls.

Herefordshire council said it will prosecute Cadbury over six alleged offences related to not keeping its factory in good repair, the plant's layout and provision of adequate drainage and also the cleaning and disinfection of equipment.

Cadbury will appear before Herefordshire Magistrates' Court on July 24.

Cadbury had no immediate comment on the court cases.

Its shares were off 0.6 per cent at 710-1/2 pence by 1340 hours in a firmer London stock market.

REUTERS SLD KP1430