Crisis cools on Sudan 1

The crisis over food contaminated by the illegal dye Sudan 1 is being played down by the trade this week. Those involved are stressing that affected products are now "off the shelves" and business is back to normal.

However, speculation is still rife over the cost of the scare, after the crisis was estimated by one consultant from Deloitte at around 500m.

But a spokesman for Premier Foods, which initially used the contaminated chilli powder, disagreed with that assessment. He said: "Figures currently in press speculation are not something that Premier recognises. We've seen no significant change in sales and do not expect the situation to have any material financial impact on the company."

The Food Standards Agency also played down the effects on the industry. "Restaurant chains and other outlets have already been alerted by their suppliers of any affected products," it said, "but all local authorities are checking as a matter of course."

It added: "Any affected products should be thrown away."

The crisis, branded the food industry's "Armageddon" by the Daily Mail, began three years ago when Premier Foods used chilli powder containing Sudan 1 in a batch of Crosse & Blackwell's Worcester Sauce.

Working its way along the food chain, the spice, which in large enough doses can cause cancer, got into nearly 500 products. Perhaps the most important outcome for the industry was that some of the contaminated Worcester sauce was used by food manufacturers in a range of ready-made dishes.

While no-one knows the extent of the long-term effects, suppliers and restaurants which received or handled contaminated products are adamant that they have been swift to deal with the problem.

A spokesman for food supplier Brakes, where eight products were affected, said a letter had been sent to every unit it supplied since November 2003, offering an explanation.

The spokesman said: "We are offering a full refund on all products that are collected. All our own-brand products are now unaffected stock and new batches are back in the system."

Supplier 3663 First for Foodservice, which had a "wide range of products" affected, also said that the situation was now under control and confirmed that all customers had been instructed to destroy affected items.

On the restaurant side, at McDonald's, sachets of low-fat Caesar dressing were contaminated. But the company claimed that an impact on sales was "highly unlikely" and the batch had now been replaced.