MICHAEL FOODS INC /MN
8-K, 1999-02-25
AGRICULTURAL PROD-LIVESTOCK & ANIMAL SPECIALTIES
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                             WASHINGTON, D.C. 20549
                               ------------------

                                    FORM 8-K
                               ------------------

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported) February 2, 1999

                               MICHAEL FOODS, INC.
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                                    MINNESOTA
- --------------------------------------------------------------------------------
                 (State or other jurisdiction of incorporation)

            0-15638                                    41-0498850
- ----------------------------------            ----------------------------------
(Commission File Number)                      (IRS Employer Identification No.)

Suite 324, Park National Bank Bldg.
5353 Wayzata Boulevard
Minneapolis, Minnesota                         55416
- ----------------------------------------------------------
(Address of principal executive offices)     (Zip Code)

       (Registrant's telephone number, including area code) (612) 546-1500

                                       N/A
- --------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)

ITEM 5.  OTHER EVENTS.

         On February 2, 1999, Kohler Mix Specialties, Inc. ("Kohler"), a
subsidiary of Michael Foods, Inc. (the "Company"), announced the voluntary
recall of single serve 2% milk in 10 ounce paper cartons produced for Land
O'Lakes on December 23 and December 24, 1998 due to possible contamination of
the product with Listeria monocytgenes. On February 6, 1999, Kohler announced
its expansion of the voluntary recall to include all cartoned dairy products
produced at Kohler's White Bear Lake, Minnesota plant from December 23, 1998 to
February 5, 1999. On February 16, 1999, Kohler received permission to restart a
section of its plant after filing its detailed action plan

<PAGE>


with the Minnesota Department of Agriculture. Further information is included in
the exhibits filed herewith.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

         (c)      Exhibits

                  The following exhibit is filed herewith:

                  EXHIBIT NUMBER   DESCRIPTION
                  --------------   -----------

                       99.1        News release of Michael Foods, Inc.,
                                   issued February 2, 1999, regarding
                                   product recall.

                       99.2        News release of Michael Foods, Inc.,
                                   issued February 6, 1999, regarding
                                   expansion of product recall.

                       99.3        News release of Michael Foods,
                                   Inc., issued February 8, 1999,
                                   regarding voluntary product recall.

                       99.4        News release of Minnesota
                                   Department of Agriculture issued
                                   February 16, 1999.


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                      MICHAEL FOODS, INC.


Dated: February 25, 1999              By: /s/ John D. Reedy
                                          --------------------------------
                                          John D. Reedy, Vice President-Finance
                                          Chief Financial Officer and Treasurer


                                      -2-

<PAGE>


                                  EXHIBIT INDEX

         EXHIBIT NUMBER         DESCRIPTION                                 PAGE
         --------------         -----------                                 ----

              99.1              News release of Michael Foods, Inc.,         4
                                issued February 2, 1999, regarding
                                product recall.

              99.2              News release of Michael Foods, Inc.,         5
                                issued February 6, 1999, regarding
                                expansion of product recall.

              99.3              News release of Michael Foods,               9
                                Inc., issued February 8, 1999,
                                regarding voluntary product recall.

              99.4              News release of Minnesota                   11
                                Department of Agriculture
                                issued February 16, 1999.


                                       -3-



                                                                    EXHIBIT 99.1


NEWS RELEASE

Media Contacts:     Mark D. Witmer      Terry Nagle or Lydia Botham
                    For Kohler Mix      For Land O' Lakes
                    800-325-4270        651-481-2222
                    612-542-4906

ATTENTION MEDIA NEWS DIRECTORS: This recall pertains only to consumers in the
following states: Minnesota, Wisconsin, Iowa, North Dakota, South Dakota,
Nebraska, Illinois and Indiana.

FOR IMMEDIATE RELEASE

KOHLER MIX SPECIALTIES INITIATES PRODUCT RECALL BECAUSE OF POSSIBLE HEALTH RISK

White Bear Lake, MN Feb. 2 -- Kohler Mix Specialties, Inc. announced today that
it is recalling single serve 2% milk in 10 ounce paper cartons produced for Land
O' Lakes. This product is distributed in only the following states: Minnesota,
Wisconsin, Iowa, North Dakota, South Dakota, Nebraska, Illinois and Indiana. It
is suspected that the product has the potential to be contaminated with Listeria
monocytogenes, an organism which can cause serious and sometimes fatal
infections in young children, frail or elderly people, and others with weakened
immune systems. Healthy individuals may suffer only short-term symptoms, such as
fever, headaches, stiffness, nausea, abdominal pain and diarrhea, from listeria
infection.

The following product is subject to the recall:

Brand            Carton Size       Product Description      Code Dates
- -----            -----------       -------------------      ----------
Land O' Lakes    10 oz (paper)     2% Reduced Fat Milk      Feb 10 & Feb 11

The code date can be found on the top seal of the carton. This information is
printed in black ink. The plant code of "PLT 27-416" is also found on the top
seal.

There has been no report of a serious illness related to the product subject to
the recall. Consumers are advised to NOT consume this product and should return
the item to the store or supplier where they purchased the product for a refund.
The product in question was produced at Kohler's White Bear Lake, MN plant.
Consumers can call Kohler Mix at 800-248-3447 or Land O' Lakes at 800-328-4155
for further information.

Officials from the Minnesota Department of Agriculture have been advised of the
situation and are working with Kohler Mix and its customer to monitor the
recall.

Kohler Mix Specialties, Inc. is a wholly-owned subsidiary of Michael Foods, Inc.

                                      # # #

02-02-99


                                      -4-



                                                                    EXHIBIT 99.2


                     KOHLER MIX SPECIALTIES BROADENS PRODUCT
                     RECALL BECAUSE OF POSSIBLE HEALTH RISK

        No Half-Gallon or Gallon Containers Are Involved in This Recall;
                It Involves Dairy Products in Small Cartons Only

         White Bear Lake, MN Feb. 6 -- Kohler Mix Specialties, Inc. announced
today that it is broadening a recall of cartoned milk products produced at its
White Bear Lake, MN plant. As a precaution, Kohler Mix is today recalling ALL
cartoned products produced at its White Bear Lake, MN plant. The plant code of
"PLT 27-416" is found on the top seal of the carton along with the use by date.
This information is printed in black ink. A complete listing of the products
under recall follows the body of this release. On February 2, 1999 Kohler
announced a recall of certain single-serve 2% milk in 10 ounce cartons. Since
the recall started, tests on two unsealed cartons of 2% milk in 10 ounce cartons
returned from the marketplace have indicated the potential for the presence of
Listeria monocytogenes, an organism which can cause serious and sometimes fatal
infections in young children, frail or elderly people, and others with weakened
immune systems. Healthy individuals may suffer only short-term symptoms, such as
fever, headaches, stiffness, nausea, abdominal pain and diarrhea, from listeria
infection.

         The source of the possible contamination is unknown at this time.
Kohler Mix has done extensive testing of production samples. All samples have
tested negative for the presence of listeria.

         There has been no report of a serious illness related to the products
subject to the recall. Consumers are advised to NOT consume these products and
should return the items to the store or outlet where they purchased the products
for a refund. Consumers can call Kohler Mix at 800-446-0994 for further
information. Officials from the Minnesota Department of Agriculture and the U.S.
Food and Drug Administration have been advised of the situation and are working
with Kohler Mix to monitor the recall.

         James Kohler, President of Kohler Mix Specialties, Inc., commented, "We
take our commitment to quality very seriously. We have decided to take this
precautionary measure to ensure consumer safety."

         Kohler Mix management stressed that the products subject to the recall
are only cartons from the noted production dates at its White Bear Lake plant.
None of Kohler's production from its Sulphur Springs, TX plant is affected and
no other products produced at the White Bear Lake plant are affected. Management
also stressed that all cartoned production lines at the White Bear Lake facility
are undergoing a thorough inspection. Production of cartoned products is
expected to resume on February 7, 1999. As an additional precaution, Kohler has
enhanced its "test and release" process whereby all cartoned products will
undergo additional quality assurance measures prior to shipping.

         The following products are subject to the recall, the products will
have a "use by date" on or between the dates listed below. All of these products
have the plant code of PLT 27-416.


                                      -5-

<PAGE>


<TABLE>
<CAPTION>
               Carton                                                           WITH A "USE
Brand          Size            Product Description                              BY" DATE:
<S>            <C>             <C>                                              <C>
Becker's       Quart           Ultra-Pasteurized Heavy Whipping Cream           March 16 thru April 13

Becker's       Quart           Ultra-Pasteurized 40% Heavy Whipping Cream       March 06 thru April 05

Dairy Fresh    Quart           Half & Half                                      Jan 20 thru Feb 21

Hardees        Half Pint       Ultra-Pasteurized 2% Milkfat Vitamin A&D         Feb 10 thru March 19

Kemps          Pint            Ultra-Pasteurized Half & Half                    March 07 thru April 06

Kemps          Pint            Ultra-Pasteurized Heavy Whipping Cream           March 01 thru March 22

Kemps          Pint            Sweetened Fat Free Half & Half                   March 06 thru April 07
                               Ultra-Pasteurized

Kemps          Quart           Dairy Good Lactose Reduced Lowfat Milk           *Feb 14 thru March 22
                               2% Milkfat

Kemps          Quart           Dairy Good Lactose Reduced Lowfat Milk           *Feb 14 thru March 22
                               1% Milkfat

Kemps          Quart           Dairy Good Lactose Reduced NONFAT                Feb 14 thru March 15
                               Milk

Kemps          8oz             Ultra-Pasteurized Heavy Whipping Cream           March 01 thru April 05

Kemps          8oz             2% Lowfat Milk                                   Feb 11 thru March 24

Kemps          8oz             Skim Milk                                        Feb 15 thru March 15*

Kemps          8oz             Swiss Style Chocolate Lowfat Milk                Feb 27 thru March 30

Kohler Mix     10oz            1% Lowfat Milk                                   Feb 14 thru March 22
Specialties

Kohler Mix     Quart           Ultra-Pasteurized Artificially Flavored          March 28 thru May 05
Specialties                    Sweetened Whipping Cream

Kohler Mix     Half Pint       Ultra-Pasteurized 2% Milkfat Vitamin A&D         Jan 28* thru March 24
Specialties

Kohler Mix     Half Pint       Ultra-Pasteurized 1/2% Milkfat Vitamin           Feb 21 thru March 30
Specialties                    A&D Chocolate Lowfat Milk

Land O Lakes   10oz            Ultra Pasteurized 1% Lowfat Milk                 Feb 14 thru March 22

Land O Lakes   10oz            Ultra Pasteurized Milk                           Feb 13 thru March 22

Land O Lakes   10oz            Ultra Pasteurized Chocolate Lowfat Milk          Feb 21 thru March 30

Land O Lakes   10oz            Ultra Pasteurized Fat Free Skim Milk             Feb 15 thru March 23

Land O Lakes   10oz            Ultra Pasteurized 2% Reduced Fat Milk            Feb 10 thru March 24
</TABLE>


                                      -6-

<PAGE>


<TABLE>
<S>            <C>             <C>                                              <C>
Land O Lakes   Pint            Ultra Pasteurized 2% Reduced Fat Milk            Feb 14 thru March 22

Land O Lakes   Pint            Ultra Pasteurized Chocolate Lowfat Milk          Feb 27 thru March 23

Land O Lakes   Pint            Ultra Pasteurized Milk                           Feb 15 thru March 01

Land O Lakes   Pint            Ultra Pasteurized Fat Free Skim Milk             Feb 23 thru March 22

Land O Lakes   Pint            Ultra Pasteurized Gourmet Fat Free Half &        March 07 thru April 13
                               Half

Land O Lakes   Pint            Ultra Pasteurized HAZELNUT Fat Free Half         March 17 thru April 05
                               & Half

Land O Lakes   Pint            Ultra Pasteurized FRENCH VANILLA Fat             March 23 thru April 04
                               Free Half & Half

Land O Lakes   Pint            Ultra Pasteurized Gourmet Half & Half            March 07 thru April 06

Land O Lakes   Pint            Ultra Pasteurized Gourmet Heavy                  March 07 thru April 05
                               Whipping Cream

Land O Lakes   Pint            Ultra Pasteurized Premium Chocolate Milk         Feb 26 thru April 04

Land O Lakes   Quart           Ultra Pasteurized Fat Free Skim Milk             Feb 15 thru March 23

Land O Lakes   Quart           Ultra Pasteurized 1% Lowfat Milk                 Feb 13 thru March 22

Land O Lakes   Quart           Ultra Pasteurized 2% Lowfat Milk                 Feb 14 thru March 22

Land O Lakes   Quart           Ultra Pasteurized Chocolate Lowfat Milk          Feb 21 thru March 30

Land O Lakes   Quart           Ultra Pasteurized Gourmet Half & Half            March 07* thru April 05

Land O Lakes   Quart           Ultra Pasteurized Gourmet Heavy                  March 01 thru April 13
                               Whipping Cream

Land O Lakes   Quart           Gourmet Heavy Whipping Cream                     Jan 15 thru Feb 28

Land O Lakes   Quart           Ultra Pasteurized Gourmet Fat Free Half &        March 07 thru April 13
                               Half

Land O Lakes   Quart           Ultra Pasteurized Premium Chocolate Milk         Feb 26 thru April 04

Land O Lakes   Half Pint       Ultra Pasteurized Gourmet Heavy                  March 01 thru April 05
                               Whipping Cream

Muller         Pint            Half & Half                                      April 06 thru April 06
Pinehurst

Muller         Quart           Ultra-Pasteurized Heavy Whipping Cream           March 07 thru March 16
Pinehurst

Muller         Quart           Ultra-Pasteurized Half & Half                    March 07 thru March 30
Pinehurst
</TABLE>


                                      -7-

<PAGE>


<TABLE>
<S>            <C>             <C>                                              <C>
Muller         Half Pint       Ultra-Pasteurized Heavy Whipping Cream           March 01 thru March 29
Pinehurst

Oak Grove      Quart           100% Lactose Free Skim Milk                      Feb 14 thru March 15

Oak Grove      Quart           100% Lactose Free 2% Milkfat                     Feb 14 thru March 15

Perkins        Quart           Ultra-Pasteurized Artificially Flavored          March 28 thru May 05
                               Sweetened Whipping Cream

Roundy's       Pint            Grade A Ultra-Pasteurized Half & Half            March 14* thru April 13

Roundy's       Quart           Grade A Ultra-Pasteurized Half & Half            March 14 thru April 12

Roundy's       Half Pint       Grade A Ultra-Pasteurized Heavy Whipping         March 08 thru April 12
                               Cream

Wendy's        Half Pint       2% Reduced Fat Milk Ultra-Pasteurized            Feb 11 thru March 05
</TABLE>

Asterisk indicates revision.

Kohler Mix Specialties, Inc. is a wholly-owned subsidiary of Michael Foods, Inc.


                                      -8-



                                                                    EXHIBIT 99.3


                        [MICHAEL FOODS, INC. LETTERHEAD]


Contact:  Mark D. Witmer
          ASSISTANT TREASURER
          (612) 546-1500

For Immediate Release

     MICHAEL FOODS' DAIRY PRODUCTS DIVISION ANNOUNCES VOLUNTARY PRODUCT RECALL -
     INCLUDES ONLY CERTAIN CARTONED DAIRY PRODUCTS

     MINNEAPOLIS, February 8 -- Michael Foods, Inc. (Nasdaq\NMS:MIKL) today
     announced its Kohler Mix Specialties, Inc. subsidiary has, as a
     precautionary measure, initiated a voluntary recall of certain cartoned
     dairy products. After an initial limited recall, the Company on February 6,
     1999 broadened the recall to include 8 ounce, 10 ounce, pint and quart
     cartons of ultra-high temperature ("UHT") pasteurized regular and chocolate
     milk, half & half, and whipping cream sold primarily to customers who
     distribute to the retail grocery market.

     The expanded recall was initiated after it was learned that several milk
     cartons produced at Kohler's White Bear Lake, MN plant showed the presence,
     or the potential presence, of Listeria monocytogenes, an organism which can
     cause serious and sometimes fatal infections in young children, frail or
     elderly people, and others with weakened immune systems. Healthy
     individuals may suffer only short-term symptoms, such as fever, headaches,
     stiffness, nausea, abdominal pain and diarrhea, from listeria infection.
     However, management noted that there has been no report of a serious
     illness related to the products subject to the recall.

     The source of the possible contamination is unknown at this time. Kohler
     Mix has done extensive testing of production samples. All samples have
     tested negative for the presence of listeria. Officials from the Minnesota
     Department of Agriculture and the U.S. Food and Drug Administration have
     been advised of the situation and are working with Kohler Mix to monitor
     the recall.

     A complete listing of the products under recall can be found on Michael
     Foods' web site at www.michaelfoods.com where a February 6, 1999 consumer
     alert news release can be found.

     Gregg A. Ostrander, President and Chief Executive Officer of Michael Foods,
     Inc., commented, "We take our commitment to quality very seriously. We have
     decided to take this voluntary, precautionary measure at our Kohler Mix
     subsidiary to ensure consumer safety."

     None of Kohler's production from its Sulphur Springs, TX plant is affected
     and no other products produced at the White Bear Lake plant are affected,
     including its main mix products and creamer products. The recalled products
     represent approximately 1% of the fluid milk processed


                                      -9-

<PAGE>


     at the White Bear Lake plant annually and less than 1% of the fluid milk
     processed by the division annually. Management also stressed that all
     cartoned production lines at the White Bear Lake facility are undergoing a
     thorough inspection. Production of cartoned products is expected to resume
     in the near future. As an additional precaution, Kohler has enhanced its
     "test and release" process whereby all cartoned products will undergo
     additional quality assurance measures prior to shipping.

     Kohler Mix Specialties, Inc. represented approximately 14% of corporate net
     sales and 8% of corporate operating earnings for the nine months ended
     September 30, 1998.

     Michael Foods, Inc. is a diversified food processor and distributor with
     particular interests in egg products, refrigerated grocery products,
     specialty dairy products and refrigerated potato products. Principal
     subsidiaries include Papetti's Hygrade Egg Products, Inc., M. G. Waldbaum
     Company, Crystal Farms Refrigerated Distribution Company, Kohler Mix
     Specialties, Inc. and Northern Star Co.

                                     # # #

02-08-99


                                      -10-



                                                                    EXHIBIT 99.4


Minnesota Department of Agriculture
90 West Plato Boulevard
Saint Paul, Minnesota 55107
(651) 297-1629

================================================================================

                                                                    NEWS RELEASE

FOR IMMEDIATE RELEASE: TUESDAY, FEBRUARY 16, 1999

CONTACT: Michael Schommer, Communications Coordinator, 651-297-1629

          MDA INSPECTORS CONFIRM PRESENCE OF LISTERIA IN KOHLER PLANT
            DEPARTMENT HELPS COMPANY DEVELOP PREVENTIVE ACTION PLAN

     ST. PAUL, Minn. - The Minnesota Department of Agriculture today announced
that it has confirmed the presence of LISTERIA MONOCYTOGENES in the White Bear
Lake dairy processing plant operated by Kohler Mix Specialties. The Department
continues to work with Kohler to implement an action plan to prevent future
contamination.

Kohler issued a voluntary recall after receiving indications that a portion of
its dairy product line was potentially contaminated with the bacteria. In an
ensuing investigation of the Kohler facility, MDA examined 47 suspect products
and took 87 environmental samples from throughout the plant. There have been
nine product samples confirmed positive for Listeria. In addition, six
environmental samples have tested positive for Listeria. One sample came from
the floor underneath a carton filling machine, one from a floor drain, one from
the floor between two fillers, and three from the equipment surfaces on the
undersides of the three fillers.

Kohler has advised the department that the areas in question have been cleaned
and sanitized. In addition, Kohler has submitted a detailed action plan to MDA
and the Food and Drug Administration outlining corrective steps that have been
taken or will be taken to reduce the risk of future contamination. The plant
plans to resume production of cartoned product tomorrow, February 17. Until
further notice all dairy products produced by the plant will be held and tested
to ensure they are not contaminated. Product release decisions will be based on
product sampling and environmental sampling information.

The positive environmental samples from the Kohler plant are located outside the
product zone, and it is not known exactly how the bacteria may have moved into
the product line. According to MDA Assistant Director Doug Engebretson, that
uncertainty is not unusual and is due in part to the low rate of product
contamination (9 positive samples out of millions of dairy cartons produced at
the plant).

"It is extremely difficult in situations of random, low level contamination to
identify an exact route of transfer from an environmental location to a
product," Engebretson said. "This was particularly challenging when the
production dates ranged from December 23 to


                                    - more -


                                      -11-

<PAGE>


January 7. We worked with Kohler to set up an action plan that identifies the
nine most likely routes of transmission and we reviewed the action steps
designed to eliminate those routes."

The possible routes include cross contamination due to inadequate operating
procedures, improper or inadequate cleaning practices, contamination of
equipment through downtime and maintenance work, and improper or open seals. The
action steps include thorough cleaning and sanitizing of the Kohler facility,
enhanced employee training, detailed modifications of operating procedures,
development of a new product sampling and release program, and expanded
environmental monitoring. MDA and the FDA will continue to monitor the Kohler
plant to determine the effectiveness of the corrective actions as they are fully
implemented.

Consumption of Listeria-contaminated products can lead to listeriosis, a
condition often marked by short-term flu-like symptoms in healthy adults and
older children. However, listeriosis can present more serious health problems
for pregnant women, the elderly, the very young, and those with weakened immune
systems. According to the Minnesota Department of Health, there have been no
confirmed cases of listeriosis associated with the Kohler recall. However,
health officials will remain watchful in the coming weeks, as the organism can
have an incubation period of up to 70 days.

For more information about the recall, contact Kohler at 1-800-446-0994. For
information from the MDA, contact Theresa Dziuk at 651-282-5986. People who want
to know more about symptoms or think they may have become ill from suspect
product can call the Minnesota Department of Health toll free at 1-800-657-3903.

                                      # # #

 THIS RELEASE IS AVAILABLE ON THE WORLD WIDE WEB AT http://www.mda.state.mn.us
     BROADCASTERS: ACTUALITY AVAILABLE BY CALLING 1-800-967-AGRI (2474) OR
                                  651-297-5174.


                                       12



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