Chocolate giant Cadbury Schweppes has announced that the salmonella contamination at one of its production plants will cost it about £20m ($37.5m). Approximately half of the sum relates to the cost of recalling more than one million chocolate bars from seven of its most popular brands. The rest comes from advertising costs and manufacturing improvements.

Cadbury said the cost included £6m it hoped to recover through its insurance. A report commissioned by the Food Standards Agency found that Cadbury was using an out-of-date approach to risk assessment and product testing for salmonella contamination. The firm found traces of salmonella in some of its chocolate bars in January 2006.