Starbucks announced Thursday it's cooperating with federal regulators by recalling 167,000 coffee mugs imported from China because they pose a "minor burn hazard" to consumers when filled with hot liquid.
The java giant said it has received 23 reports from U.S. consumers who purchased the Starbucks Fusion Coffee Mug and said the handle broke off it when it was filled with coffee. Nine of those consumers reported minor burns as a result of the spill.
"Consumers should stop using recalled products immediately unless otherwise instructed," said the U.S. Consumer Product Safety Commission.
The mugs are white and have a black plastic handle and a stainless steel base. Starbucks is offering customers a refund for returning the defective mugs.
Shares of Starbucks are down 36% for 2007 amid signs that customer traffic is slowing in its U.S. locations. The news of the problem cups comes as U.S. consumers have become wary of goods imported from China because of a series of recalls. Mattel (MAT - Cramer's Take - Stockpickr - Rating), for instance, had to recall China-made toys that contained toxic paint.
The warning is also reminiscent of a well-known product liability lawsuit against McDonald's (MCD - Cramer's Take - Stockpickr - Rating). In that case, a jury awarded $2.9 million to a woman who burned herself with hot coffee she bought at the fast food chain in 1992. The suit was widely criticized as an example of a frivolous lawsuit.
Shares of Starbucks were down 10 cents, or 0.4%, to $22.55.
I found one line interesting in this story...
The one spelling out that the mug is made of a porcelain body, a stainless steel base and a plastic handle. The handle is not the snap on type that Bodum and others have made but from what I understand it is glued on.
I find this interesting because nothing seems to be easier than making a whole porcelain mug, one piece, made on an automatic jigger that will actually put on the handle at the end of the jiggering process. (this kind of equipment has been around for at least 25 years)...but chinese labor is cheap, so instead of designing the obvious, the least obvious is put on paper...with the known result. Obviously China does not just produces cheaply it also changes the design process....
why blame china?
I dont understand this blaming china business. Arent western nations the consumers - if we didnt buy it they wouldnt sell it!!! Western countries could have a total ban on chinese products until china gets its lack of human rights in order - I would like to see that!!!!
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