GREG HINZ: Another perplexing plot twist in the mayor’s casino quest. PAGE 2
JOE CAHILL: So much for that no-poaching pledge. PAGE 3
CHICAGOBUSINESS.COM | FEBRUARY 20, 2023 | $3.50
Criminal probe adds to Abbott’s formula woes
I FOOD AND HOSPITALITY
Prosecutors’ investigation of contamination at Michigan plant could lead to fines or even jail time BY KATHERINE DAVIS
Stephanie Hart of Brown Sugar Bakery
KITCHEN
JOHN R. BOEHM
A year after safety lapses at Abbott Laboratories’ baby formula plant in Sturgis, Mich., triggered a nationwide formula shortage, potential criminal liability hangs over the company and its executives. Following infant illnesses and deaths, whistleblower complaints, a formula recall and eventually a plant shutdown, the U.S. Department of Justice opened a criminal investigation into conduct at Abbott’s plant. Since the formula saga began, Abbott has taken much of the blame for the
CONFIDENCE Chicago’s Black food entrepreneurs are trying new business models and developing their own recipes for financial success PAGE 13
shortage, had plant safety issues exposed and has seen a steep decline in formula sales. But the DOJ investigation could deepen the damage from an episode that has already hurt the company’s bottom line and brand name. If prosecutors bring criminal charges, potential penalties include steep fines for Abbott, as well as fines and even jail time for company executives. Food safety law experts say the DOJ is likely assessing whether Abbott and individual executives broke provisions in the Food, Drug & See ABBOTT on Page 19
Labor faceoff menaces Chicago hotel recovery
Another strike would devastate city’s convention and tourism industry as it starts to come back from COVID BY DANNY ECKER Chicago hotels finally started to regain their footing last year after being knocked down by the pandemic. Now comes a new threat to their recovery: union labor contract talks. Collective bargaining agreements covering thousands of workers at more than two dozen large hotels in the city expire late this summer, teeing up their first labor negotiations since COVID-19 thumped the hospitality industry. It’s also the first
time that labor leaders and operators of the city’s biggest hotels will square off at the bargaining table since a historic 2018 strike disrupted weeks of crucial late summer tourism and frustrated corporate meeting and trade show attendees. This time around, the two sides will need to find common ground in the wake of a public health crisis that fundamentally changed the way hotels operate and sharpened union demands, See HOTELS on Page 20
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BOOTH INSIGHTS
GROCERY MERGER
Fake it till you make it? Four keys to doing it right. PAGE 9
The local investor who stands to make billions in the deal. PAGE 6
2/17/23 3:12 PM