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Peanut butter dumped at New Mexico landfill

Bankrupt Sunland Inc. can't unload peanut butter it made at Costco after warehouse retailer refused the product.
By Danielle Haynes Follow @DanielleHaynes1 Contact the Author   |   March 29, 2014 at 11:50 AM

Nearly one million jars of edible peanut butter are being dumped in a New Mexico landfill after the bankrupt Sunland Inc. was unable to unload the food at Costco or food banks.

Sunland Inc, a bankrupt peanut-processing plant, was at the heart of a salmonella outbreak and nationwide recall of jars of peanut butter in 2012.

The $2.6 million worth of peanut butter now in question was made for Costco Wholesale stores last year before the plant's closure last fall, WREX-TV, Albuquerque reported.

Costco refused to take the peanut butter even though tests proved the product was safe. Costco also refused requests that the peanut butter be donated to food banks or sold to institutions like prisons.

Court records indicate Costco turned the product away due to leaky peanut oil.

[WREX]

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