What the FDA says Taylor Farms lettuce is outright fake

The Food and Drug Administration’s reversal of a key call for its cyclosporiasis investigation has caused confusion in the US, but the agency said Monday it has not changed its main conclusions about the outbreak.

The agency said on Sunday that tests showing that a sample of iceberg lettuce supplied by Taylor Farms de Mexico contained the cyclospora parasite were false. However, that only applies to one shipment of lettuce provided by the company, which the agency believes was the vehicle that sickened more than 1,600 people and thousands of others.

In a statement Monday, the agency said its false conviction does not change its earlier conclusion that the outbreak was linked to shredded iceberg lettuce from central Mexico supplied by Taylor Farms, which is also made at some Taco Bell locations. The agency still advises Americans not to eat iceberg lettuce.

“FDA’s investigation into the traceability and data of the outbreak continues to be linked to charred iceberg lettuce from Taylor Farms locations in central Mexico,” the statement said. “FDA will continue to work with federal and state partners to investigate this multistate outbreak and ensure that the products affected by this outbreak are removed from the market.”

Investigators are continuing to investigate what exactly caused the outbreak, which can cause symptoms such as an upset stomach for days or weeks. CNBC reached out to the FDA for details on the next phase of the investigation, including whether additional ingredients or suppliers are being considered and whether the agency expects to issue additional guidance. The center has not yet responded.

Former FDA Commissioner Dr. Scott Gottlieb suggested on CNBC that the test result does not clear Taylor Farms of its link to the outbreak. Friday’s recall was for a product that was imported a few weeks ago and was different from the lettuce that the FDA tested positive for, he said.

He also noted that because cyclospora has an incubation period of up to two weeks and lettuce has a short shelf life, it is important to test multiple shipments, even if they come from one farm.

Although the outbreak may be confined to one vendor at the moment, it is possible that the infection has spread widely, according to Dr. Norman Beatty, associate professor of medicine at the University of Florida College of Medicine.

“We may find that this current outbreak is likely to lead to additional outbreaks because of the nature of this animal,” Beatty told CNBC. “The reason this is important in this current outbreak is because there are over 30 states where this is isolated, and there may be other smaller outbreaks occurring in other states.”

The false positives come as the ongoing investigation creates uncertainty for both consumers and the food industry. While the FDA has said not to eat iceberg lettuce from Taylor Farms, some diners have stayed away from salads altogether as the number of cases mounts.

“Unfortunately, these recent developments may add confusion to what is already a complex situation for consumers,” said Frank Yiannas, former deputy commissioner for food policy and response at the FDA.

While industry analysts don’t expect the outbreak to have a long-term impact on Taco Bell or other restaurant chains, it could at least temporarily dampen sales, based on foot traffic data, and cause a one- to two-quarter hit to its affiliates.

In the investigation of a foodborne disease outbreak, a positive result can occur if the test signal cannot be reproduced during the confirmatory test. Some doctors have pointed out that cyclospora is very challenging to reproduce in the lab.

But there has been no change in how government officials are looking at the source of the outbreak.

The Department of Health and Human Services in Michigan, where the outbreak has seen the most growth, says it continues to recommend that people buy whole heads of lettuce rather than pre-washed, bagged or pre-mixed salads.

The organization added that based on interviews with more than 2,000 infected patients, most of them did not report eating lettuce at the restaurant, although they often said they ate leafy greens in other places.

Taylor Farms said Monday morning that it will continue to voluntarily recall lettuce from central Mexico, and Taco Bell has begun removing suspected lettuce from restaurants in the affected states.

The ripple effects go beyond those companies.

Walmart said on Monday it had removed four salad kit products, under its Marketside brand and supplied by Taylor Farms, from stores in 27 states despite saying there was no indication that its products were part of the outbreak.

“There are no confirmed illnesses associated with these products at this time,” the company said in a statement. “We are working closely with our supplier and have taken immediate steps to remove the products from sale.”

In restaurants, uncertainty proves as challenging as its outbreak. Salad-focused chains and other operators who rely heavily on fresh produce are left without knowing that any other ingredients may be harmful.

Taco Bell told CNBC in a statement Saturday that it voluntarily removed all suspect lettuce from its locations within 72 hours of starting the process and adjusted its supply chain accordingly. The company added that it is “confident” that consumers can eat safely at its locations.

“Obviously, this is a nationwide industry issue, not a Taco Bell-specific issue,” the company said. “We hope that other members of the industry take the same prompt action and accountability to the consumer as we do.”

Foot traffic at Taco Bell was down about 19% on Friday compared to the weekday. average so far this year, according to data from research firm Placer.ai. Other restaurant chains that sell lettuce, including Chopt, Panera Bread and Chipotle, also declined.

As headlines about the outbreak spread last week, the industry’s leading legal team insisted it takes food safety seriously.

“The Food Code requires that every restaurant must have a food safety certified manager on every shift,” National Restaurant Association CEO Michelle Korsmo said in a LinkedIn post.

“We will continue to support public health officials as they investigate this disease and ensure our members have the information they need to evaluate their food safety decisions,” he added.

And without the false positives, Taylor Farms and the parent of Taco Bell Yum Brands they are still reeling from the reputation of the outbreak that resulted in product removals and widespread headlines. Still, restaurant analysts previously told CNBC they didn’t expect any long-term problems for companies linked to the outbreak.

Shares of Yum Brands are down nearly 9% in the past five days.