Once Upon a Farm recalls every Tractor Wheels bar after choking reports; stock drops 38%

Once Upon a Farm is yanking its entire Tractor Wheels line of soft-baked toddler bars. The voluntary recall, announced Oct. 30, covers all lots of three flavors: Apple, Sweet Potato & Spinach; Strawberry, Pumpkin & Beet; and Banana, Pumpkin & Cauliflower. No other products are affected, the company said.

The company cited three consumer complaints. The FDA's advisory goes further, saying it has received multiple reports of toddlers whose airways were completely blocked after eating the bars. According to the agency, standard choking responses like back blows and the Heimlich maneuver might not clear the mass, and some incidents required emergency responders and a hospital stay for observation. Once Upon a Farm said no injuries have been reported to date.

The bars turn into a clump that is thick, dry and tacky when they meet saliva and get chewed, the company said in its recall notice. The product is labeled for toddlers ages 1.5 to 2.5. It was sold across the U.S. and in Puerto Rico, both online and in stores including Costco, Target and Walmart.

Investors bailed. The stock dropped 38% over the week, wiping out $242 million in market capitalization. Tractor Wheels accounted for roughly 18% of the company's revenue so far this year, according to The Wall Street Journal.

CEO John Foraker told the Journal the whole line came off shelves because the company couldn't pin down which batch caused the problem. “Consumer safety is our number one thing and we don't mess around with it,” he said. Once Upon a Farm said it is working with the FDA to pull affected products while it reformulates the bars. Shoppers can return them where they bought them for a refund or email [email protected].

In a Securities and Exchange Commission filing, the company said it held a Nov. 2 conference call to update investors, and reported about $106 million in cash and cash equivalents with no outstanding debt as of Sept. 30, plus up to $95.0 million of borrowing capacity under its credit facilities, subject to borrowing base limits and covenants. Full third-quarter results are due Nov. 12.