Keurig recalls 7.2 million single-serve brewers, stock falls
By Anjali Athavaley
(Reuters) - Keurig Green Mountain Inc said on Tuesday it was recalling about 7.2 million single-serve brewing machines because they could overheat and spray hot liquids on users.
Keurig's shares fell 2.2 percent to $136.77 in afternoon trading. The recall comes as the company tries to roll out new brewers and expand beyond the single-serve coffee business.
"We believe the earnings impact specifically from the recall is unlikely to be material but that it could hurt brand perception, negatively impacting future brewer sales," Mark Astrachan, an analyst at Stifel, Nicolaus & Co, said in a note.
The company said the machines could malfunction especially if used to brew more than two cups in quick succession. The recall affects 6.6 million machines in the United States and 564,000 in Canada.
The affected machines are Keurig Mini Plus brewers made between December 2009 and July 2014 with the model number K10 and serial numbers starting with 31, the company said on its website. (bit.ly/1GT8a1G)
Keurig has received about 200 reports of hot liquid escaping from the brewer, including 90 reports of burn related injuries, the U.S. Consumer Product Safety Commission said.
Health Canada said Keurig had recorded 17 incidents of minor burns in Canada. (bit.ly/1vjxlmz)
In a November filing, Keurig said it had informed the Commission and Health Canada about a potential issue involving certain Mini Plus brewers. Continued...