I might guess some analytic business intelligence here to evaluated business models came into play here as now there’s a lawsuit filed against the manufacturer who instead of rebuilding the facility was looking for an opportunity to sell out. It’s not known if there is a search in place for a company to manufacture the lozenges. First Boston Pharma in Gloucester, Massachusetts is where the roof caved in this winter with the drastic winter storms we had this year.
If you read further the article states the assets were sold to BestSweet or at least an agreement was made to do so. The question remains if they can gear up and get the Cepacol products out there and will it be done in North Carolina or what is the fate of the Massachusetts factory? From looking at the website BestSweet also manufactures cough drops and right on the front page you can see an image that indicates they are a private label manufacturer for Walgreens and CVS.
The lawsuit contends that retail stores will not have an adequate supply and thus their sales will be impacted. The lawsuit is contesting how the situation was handled with selling assets immediately instead of a recovery plan. At any rate something along the way had to be done if the facility was closed or could not make the products and I guess we will hear more about this as it develops so you may not see Cepacol on the shelves or there could be a shortage so as consumers we will have to make other choices. In the retail business, shelf space is a big deal and this is the basis of the lawsuit here as the distributors stand to los a lot of money without the product being available. First Boston also makes other products and there was no mention on their fate so far. One big snow storm changed the face of this business for sure. BD
The company that distributes Cepacol Lozenges this week sued the Boston-area operation that has been manufacturing the product, alleging the company's response to a roof collapse during this winter's snowstorms has disrupted a supply chain at a critical time.
During the winter's storms, the roof on First Boston's Brockton, Mass.,manufacturing facility collapsed. At first, Reckitt Benckiser alleges in the suit, First Boston Pharma CEO Tim Hannan told the supplier that a plan was being developed to maintain production of Cepacol Lozenges. This was crucial, the suit states, because retailers allocate shelf space during the summer months.
Reckitt Benckiser alleges in the suit that First Boston Pharma executives took a different course before long.
"Rather than work on a substantive recovery plan, First Boston began searching for an opportunity to sell its assets," the suit alleges.
The suit later states: "On March 15, 2011, (Hannan) notified (Reckitt Benckiser) by telephone that First Boston had agreed to sell its assets to BestSweet Inc." BestSweet is based in Mooresville, N.C.