UPDATE 3-U.S. company recalls spinach as E. coli cases grow

(Recasts with recall, FDA statement)

By Andrea Shalal-Esa

WASHINGTON, Sept 15 (Reuters) - The nation's largest grower of organic produce said on Friday it had voluntarily recalled fresh spinach products sold in the United States, Mexico and Canada after the U.S. government said they could be linked to a deadly and worsening E. coli outbreak.

The U.S. Food and Drug Administration said one person died, 14 suffered kidney failure and at least 94 in 20 states were ill after eating suspected contaminated pre-packaged spinach, at least some of it packed by California-based Natural Selection Foods LLC/Earthbound Farm.

"The best advice to consumers is, if you don't know if it's pre-packaged or not, avoid it," Dr. David Acheson, the agency's chief officer for food safety, warned consumers.

Wisconsin health authorities said the E. coli fatality was a 77-year-old woman from Manitowoc who died Sept. 7. The FDA said 29 cases of E. coli were reported to the Centers of Disease Control in Wisconsin alone.

Acheson told reporters more cases were being reported continually and the recall could be extended to other firms.

Cases were reported in California, Indiana, Idaho, Kentucky, Maine, Michigan, Minnesota, New Mexico, Nevada, New York, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Virginia, Washington, Wisconsin and Wyoming.

Acheson called the outbreak "significant," but said there had been previous cases of E. coli contaminated lettuce and spinach. He said the federal government was continuing its investigation to isolate the cause of the contamination.

Patients infected with the bacterial illness told researchers they had eaten pre-packaged spinach packed by Natural Selection, including some sold under the Dole label, prompting the company to start its recall, Acheson said.

But he emphasized that no E. coli had been found in any specific Natural Selection products thus far.
Natural Selection/Earthbound Farm, based in San Juan Bautista, California, says it is the largest U.S. grower and shipper of organic produce, supplying nearly three quarters of all U.S.
supermarkets and with a presence in every U.S. city.

SUPERMARKETS CLEAR SHELVES
In a statement on its website, the company said it was recalling "all of the products which contain spinach in all the brands we pack with 'Best if Used by Dates' of August 17 through October 1st." It said the brands included Dole, Natural Selections foods, Price of San Juan, Emeril, Trader Joe's, Ready Pac, Sysco, Fresh Point, River Ranch, among others.

U.S. supermarkets cleared shelves of bagged fresh spinach, and some removed all fresh spinach after news of the outbreak.

Whole Foods Market Inc. (WFMI.O: Quote, Profile, Research) and Wild Oats Markets Inc. (OATS.O: Quote, Profile, Research), the top two natural and organic grocers, and Supervalu Inc. (SVU.N: Quote, Profile, Research), the No. 2 U.S. grocery chain, said they have pulled all fresh spinach from their stores.

E. coli O157:H7 is a potentially deadly bacterium that causes bloody diarrhea and dehydration. Children, the elderly and people with weak immune systems are at the highest risk.

"Until they get it solved, I will keep my menu away from any items with spinach," said South Milwaukee deli operator Greg Castle, 48.

California produces 68 percent of U.S. spinach and had a 2005 crop worth $106.5 million, a spokesman said. Its largest production center is around Salinas, in central California.

Heather Jones, an analyst at BB&T Capital Markets, said any impact on bagged spinach sales was likely to be short-lived. An E. coli scare on Dole Food Co. prepackaged salads last year only affected sales for two months, she said.

Shares of Chiquita Brands International Inc. (CQB.N: Quote, Profile, Research), which owns No. 1 U.S. bagged salad company Fresh Express, closed down about 1.4 percent at $17.14. The No. 2 bagged produce company, Dole Food Co., is privately held.

Sysco Corp. (SYY.N: Quote, Profile, Research), which distributes produce to restaurants, cafeterias and other food vendors, said it has told its companies to stop shipping spinach products.

(Additional reporting by Michelle Nichols in New York, Jessica Wohl, Andrew Stern and Brad Dorfman in Chicago, Adam Tanner in San Francisco and John Rondy in Milwaukee)

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