Smithfield Foods Joins Companies Dropping Paula Deen

by Christopher Freeburn | June 25, 2013 10:29 am

pie mom kitchen food 300x225 Smithfield Foods Joins Companies Dropping Paula Deen[1]The fallout from admitting past racist remarks[2] continues to snowball for celebrity chef Paula Deen.

On Monday, Smithfield Foods (SFD[3]) the nation’s largest pork products producer, announced that Deen would no longer serve as a spokesperson for its brands. Smithfield’s decision follows The Food Network‘s decision to drop Deen’s cooking shows after her contract expires, the Associated Press notes.

Last week, it was reported that Deen had conceded using racist language in the past during a deposition in a discrimination lawsuit filed against her by a former employee. The revelation took fire in the media, prompting long-time corporate partners to immediately begin backing away from the damaged chef[4].

Deen issued several video apologies on her website, but ducked an appearance on the Today Show last week. She is currently scheduled to appear on the show on Wednesday. TV retail channel QVC has said that it is also reviewing its agreement to sell Deen’s products.

Earlier this month, Smithfield Foods announced that it has agreed to be acquired[5] by China’s Shuanghui International for $4.7 billion.

Shares of Smithfield rose fractionally in Tuesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/05/pie-mom-kitchen-food.jpg
  2. from admitting past racist remarks: http://hosted.ap.org/dynamic/stories/U/US_PAULA_DEEN?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-06-24-19-39-58
  3. SFD: http://studio-5.financialcontent.com/investplace/quote?Symbol=SFD
  4. to immediately begin backing away from the damaged chef: http://investorplace.com/2013/06/the-food-network-fires-paula-deen/
  5. that it has agreed to be acquired: http://investorplace.com/2013/06/dont-fear-a-big-chinese-buyout-of-u-s-blue-chips/

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