Dive Brief:
- Almost one million jars of Sunland Inc. peanut butter will be disposed of at the Curry County landfill in Clovis, New Mexico.
- Mega-retailer Costco refused the peanut butter because of leaked peanut oil that made the jars "unmerchantable."
- 25 tons of peanut butter, valued at $2.6 million, will be delivered to the landfill today.
Dive Insight:
The jars are being delivered to the landfill in an effort to rid bankrupted Sunland of its inventory, a move made to accelerate the sale of the shuttered plant to buyers. Sunland experienced a salmonella outbreak in 2012 that resulted in its bankruptcy.
Cosco and the peanut plant were involved in litigation, in which Costco agreed to a court order authorizing a trustee to sell the jars. However, after receiving eight loads, Costco rejected the delivery due to the leaky residue.
According to Sunland trustee Clarke Coll, "all parties agreed there's nothing wrong with the peanut butter from a health and safety issue." Costco has refused requests to donate the inventory to food banks or sell the jars to brokers who provide food to institutions like prisons.
