Company tied to plant-based milk listeria outbreak looks to sell its plants

The Canadian company that processed plant-based milk linked to a deadly listeria outbreak is looking to sell two of its facilities while it also liquidates the Pickering, Ont. location where the outbreak originated.

Toronto-based Joriki, which was granted court protection under the Companies’ Creditors Arrangement Act last week, saw its revenue reduced due in part to the loss of key customers after several plant-based milks it manufactured under the Silk and Great Value brands were recalled.

The Canadian Food Inspection Agency said the Pickering plant was the source of a listeria outbreak that infected at least 20 people across the country and led to three deaths between August 2023 and July 2024.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

In its application for CCAA protection, chief financial officer Michael Devon said in an affidavit that Joriki has potential buyers for turnkey sales of its Toronto and Delta, B.C. facilities, noting that some of its customers rely on those facilities.

0:32 Company linked to deadly listeria outbreak permanently closes plants

The court documents also show that challenges with Joriki’s expansion into the U.S. made the company more vulnerable to the financial hit caused by the outbreak.

Devon said delays and cost overruns on its new Pittston, Pa., site had led to significant losses, and that the company’s turnaround plan for the plant was derailed by the strain of the recall.