On September 2, 2009
Sell Bad Food, Lose Your Company: How SK Foods Got Hit by Bad Tomatoes
The demise of Monterey, CA-based tomato processor SK Foods is a cautionary tale of how not to cope with a recession. The family owned company, which opened its doors in 1990 and grew to garner 14 percent of the U.S. market for packed tomatoes, was forced to declare bankruptcy and sell out to Olam International of Singapore this summer following allegations that its executives paid bribes to inflate prices and sell substandard products. A second SK Foods employee pleaded guilty last week to participating in the conspiracy, which some in the industry say was a desperate act by the company in tough economic times. Scott Sayler, SK Food’s former CEO, maintains that any wrongdoing was the fault of a few…
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