Joriki, the co-manufacturer of plant-based milks for Danone and Walmart in Canada, has initiated a process for creditor protection.
Recently released documents on the website of proposed trustees, Alvarez & Marsal, reveal that Joriki filed a notice of intention (NOI) with the Office of the Superintendent of Bankruptcy Canada at the conclusion of December.
In a notice issued to creditors on Friday, January 3, Alvarez & Marsal clarified that Joriki was “not bankrupt” and had “availed itself of a procedure whereby a company, with creditor and court approval, restructures its financial affairs.”
This strategic move is designed to provide Joriki with necessary “breathing room while it evaluates strategic alternatives,” the notice elaborates.
As per the notice, Joriki is currently facing an obligation of approximately C$203 million ($142 million) to a range of creditors. These include significant industry players such as Ingredion, Tate & Lyle Solutions, and Tetra Pak, along with the Canadian Revenue Agency and Bank of Nova Scotia.
In October, Canada’s local food regulator concluded that Joriki had not adhered to the necessary protocols to avert a listeria outbreak at its production facility located in Pickering, Ontario.
The Canadian Food Inspection Agency (CFIA) stated that Joriki “did not properly implement environmental swabbing and finished product testing.”
While the watchdog was unable to identify the primary source of the contamination, it acknowledged that this absence of clarity is “not uncommon” with pasteurized products. The report emphasized that “cross-contamination could have occurred after processing.”
An investigation into a potential listeria outbreak took root in June when Public Health Ontario alerted the CFIA concerning a listeriosis illness outbreak in the region coupled with evidence of listeria monocytogenes detected in a sample of Silk unsweetened coconut milk.
In July, the CFIA corroborated the presence of listeria contamination in plant-based milks sold under Danone’s Silk brand and Walmart’s private-label brand Great Value.
A recall was initiated for 15 Silk products, which included almond, coconut, and oat-based milks, along with three Great Value almond-based milks.
The following month, the regulator traced the outbreak to a “dedicated production line” at Joriki’s facility in Pickering, Ontario.
In its final report, the CFIA confirmed that the outbreak resulted in a total of three fatalities
