
A cyclospora outbreak linked to shredded iceberg lettuce has sent Stew Leonard's lettuce sales down 11% and pushed the chain toward greenhouse-grown alternatives, a shift that could pressure traditional suppliers like Taylor Farms and benefit controlled-environment growers.
Lettuce sales at Stew Leonard's fell 11% this week as a multistate cyclospora outbreak tied to shredded iceberg lettuce spread to more than 30 states. The eight-store New York metro chain is cutting orders of bagged lettuce from brands including Andy Boy, Dole and Fresh Express, even though none of those brands have been implicated in the outbreak, CEO Stew Leonard Jr. told The Post.
Leonard is stocking up on greenhouse-grown lettuce from Little Leaf Farms and his own private-label line, Stew Leonard's Organic Greenhouse-Grown Greenleaf Crunch, sourced from the Hudson Valley. Signs going up in stores will say his wife eats lettuce twice a day and he is only buying greenhouse-grown now.
The shift matters for the broader produce supply chain. The outbreak has hit more than 30 states, with about 7,000 people reporting symptoms. The FDA has warned consumers to avoid shredded iceberg lettuce from Mexico served at Taco Bell outlets in five states. The Washington Post reported Thursday that Taylor Farms of Salinas, California, is the likely supplier behind the contamination, though the FDA has not confirmed it. Taylor Farms did not return a request for comment.
Industry experts said the outbreak is weighing on the entire fresh-produce aisle. “People are calling in and reducing orders across the board because they think consumers won't buy fresh produce,” Joelle Mosso of Western Growers told The Wall Street Journal. In Michigan, the state with the biggest cluster of infections, health authorities told residents that bagged prewashed salad kits are risky and that buying whole heads of lettuce and removing outer leaves is safer.
Leonard sees greenhouse-grown produce as a safer bet because it relies on rainwater rather than irrigation systems that could be contaminated by human feces, which has been blamed for the parasitic outbreak. He initially hesitated to promote greenhouse brands for fear it “might scare people,” he said. By Friday he had decided to go ahead.
The read-through for the sector is that a regional grocer's switch could push other retailers to rethink sourcing if consumer avoidance persists. Greenhouse operators like Little Leaf Farms stand to gain shelf space, while field-grown and bagged lettuce suppliers face a reputational drag that could outlast the current outbreak.
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